Silver Hovering Close to $18.00 Level
Silver is slightly lower on Thursday. Currently, silver is trading at $17.92, down $0.05 or 0.29% on the day.
Risk Appetite Improves
Silver is back in familiar territory, as it hugs the 18.00 level. The metal showed strong swings last week, as tensions soared and then subsided after a major flare-up between Iran and the United States. On Tuesday, silver dropped as low as $17.68, its lowest level since December 24. If there are no further flare-ups between the U.S. and Iran and risk apprehension remains low, we could see silver resume its downward movement.
Retail Sales Improve in December
Retail sales, the primary gauge of consumer spending, were positive in December. The headline reading improved to 0.3%, up from 0.2% a month earlier. Core retail sales impressed with a gain of 0.7%, above the estimate of 0.5%. The strong numbers were a result of a late-holiday shopping spree by consumers.
Silver Technical Analysis
The key 18.00 level remains under pressure in resistance. Above, there is resistance at 18.60, which is protecting the 19.00 line. On the downside, the 50-EMA line is at 17.53, just above a support line at 17.50. We find a major support level at the round number of 17.00, which appears safe for now.
This article was originally posted on FX Empire