Silver Drifting in Light Trade on Thanksgiving
Silver prices are flat on Thursday. Currently, silver is trading at $16.94, down $0.05 or 0.29% on the day. In the U.S., the markets are closed for the Thanksgiving holiday, so silver prices will likely remain flat for the remainder of the day.
U.S. GDP for Q3 Beats Forecast
Silver yawned on Wednesday, despite a strong performance by U.S. GDP in the third quarter. Second-estimate GDP increased at an annual rate of 2.1%, which was higher than the 1.9% estimate. The initial release came in at 1.9%, and analysts had expected that the second estimate would confirm the initial release of 1.9%. A strong U.S. economy will boost investor confidence, which could put dampen the demand for safe-haven assets such as silver.
Other key indicators on Wednesday were not as positive. The Chicago PMI posted a third straight reading below the 50-level, which indicates contraction. The index improved to 46.3, but this fell short of the estimate of 47.2. On the inflation front, the Core PCE Price Index posted a small gain of 0.1% in October, after a zero reading in September. This indicator is closely monitored by investors, since it is considered to be the Federal Reserve’s preferred inflation gauge.
Silver Technical Analysis
The silver price forecast remains neutral, as silver remains range-bound. Silver remains in a consolidation phase, ahead of a breakout, which will occur sooner or later. Note that silver remains sandwiched between the 50-EMA and 200-EMA lines.
There is immediate resistance at 17.25. This is followed by the 50-EMA at 17.31. Above, 17.75 is the next resistance line. On the downside, the 200-EMA is providing support at 16.71. This is immediately followed by support at 16.50. If silver can break below this level, it has room to move down to 16.00, a level with psychological significance.