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Silver Remains Choppy, Investors Await Powell Testimony

Silver prices are steady this week, as investors look for cues that could shake up the metal. Federal Reserve Chair Jerome Powell will testify before Congress later on Tuesday at 15:00 GMT and his remarks could move the markets.
Kenny Fisher

Silver is trading sideways in the Tuesday session. Currently, silver is trading at $17.71, down 0.28% the day.

Investors Eyes Powell, Consumer Data

Silver continues to trade between 17.50 and 18.00, but that could change this week as there are key events which could impact on market movement. Federal Reserve Chair Jerome Powell will testify before Congress on Tuesday and Wednesday, and investors will be looking for hints with regard to a change in monetary policy. The Fed has been cautious, with Powell and other policymakers adopting a ‘wait-and-see’ attitude before trimming rates. However, the coronavirus outbreak has caused turmoil in the financial markets and the damage to the global economy is likely to be significant. With no end in sight to the outbreak, the Fed may consider lowering rates if it feels that global risks will worsen before we see an improvement.

Later in the week, the U.S. releases key consumer numbers. Consumer inflation and consumer spending have both been soft in recent months, although the U.S. economy remains in good shape. CPI dipped to 0.2% in December, down from 0.3%. Another weak gain of 0.2% is projected for January. It’s a similar story with retail sales, which is expected to repeat with a gain of 0.3%. Any unexpected figure from these key indicators could shake up silver prices.

 

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Silver Technical Analysis

Silver continues to trade in a narrow range between 17.50 and 18.00. The 50-day EMA is currently situated at 17.68, just below the pair. Close by, there is support at 17.50. Below, the 200-day EMA is at 17.09, followed closely by support at the round number of 17.00. On the upside, the key level of 18.00 continues to show resilience as a resistance line. Above, we find resistance at 18.60.

 

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