Impeachment Woes for Trump
Political uncertainty is never positive news for the markets, and the news that the Democrats have initiated impeachment proceedings against President Trump could weigh on investor confidence. The Democrats are claiming that Trump abused his presidential powers when he pressured the Ukrainian president to investigate Democratic senator Joe Biden and his son over their business deals in the Ukraine. So far, the markets have reacted calmly to this latest political development. However, if the impeachment move gathers steam on Capitol Hill, we could be headed to major political crisis, which would bode well for safe-haven silver.
Silver Technical Analysis
Silver posted impressive gains of 3.5% on Monday and propelled past resistance at the round number of 18.00. The metal also managed to test resistance at 18.60 and has flirted with this line throughout the week. However, silver seems content to hover close to this line and I do not expect any sustained upward movement on Wednesday. On the downside, there is support at 18.00, followed by a major support level at 17.50. On the upside, 18.80 is protecting the 19-level.
