Silver is up over 1% on the day. If the metal can hang on to these gains, it will end 2019 above the symbolic $18.00 level.
Silver prices have moved higher in Tuesday trade. Currently, silver is trading at $18.08, up $0.18 or 1.03% on the day.
Silver posted solid gains last week, climbing 3.4 percent. This marked silver’s best week since late August. The metal has not missed a beat this week, and broke across the symbolic 18.00 level earlier on Tuesday. Silver is up 6.4% in December, as investors remain attracted to gold and silver, even though risk appetite is high and the equity markets have rallied. Generally, safe-haven assets gain ground at the expense of equities, but this time the odd-man-out has been the U.S. dollar, which is showing signs of weakness.
Although silver is looking sharp at the very end of the year, traders should act with caution, as the market volumes are thin, which could lead to some swings. This environment is more favorable for short-term traders, who are comfortable with entering and exiting the market quickly.
U.S. indicators started the week on the right foot, as Chicago PMI, an important business barometer, beat expectations with a reading of 48.9 pts in December. This was up from 46.3 in the previous release and marked a 4-month high. Although this reading still shows contraction, the index is moving in the right direction. Later on Tuesday, CB Consumer Confidence is projected to accelerate to 128.0 in December, compared to 125.5 in November. On Friday, Manufacturing PMI is also expected to accelerate, with an estimate of 49.0 December, up from 48.1 pts in November.
In the Asian session, silver pushed across the 18.00 level, which has psychological significance. The upward momentum could continue, as the next resistance is at 18.60. On the downside, we find support at 17.50, followed closely by the 50-EMA line at 17.22.
Kenny is an experienced market analyst, with a focus on fundamental analysis. Kenny has over 15 years of experience across a broad range of markets and assets –forex, indices and commodities.
