Silver prices have posted small gains in Friday trade. Currently, silver is trading at $17.98, down $0.23 or 0.13% on the day.
Silver Stuck Just Below 18.00
Silver posted considerable losses early in the week, falling below the psychologically important 18.00 level. The metal has been steady since then but has been unwilling to stray very far from this key level and I do not expect that trend to change in the very near future. Silver prices have improved nicely since early December, when silver was as low as 16.53.
The week wraps up with PMI reports from the manufacturing and services sectors. The manufacturing PMI has improved in each of the past four months and came in at 52.5 in December, which indicates slight expansion. The forecast for the January report stands at 52.4 pts. The Services PMI has also been moving higher in recent months and is projected to accelerate to 52.9 in January.
Investors and traders should also keep an eye on the World Economic Forum in Davos, as Treasury Secretary Steven Mnuchin will participate in a panel on global economic conditions. Any significant remarks about future U.S. economic policies could be seized on by the markets and affect the movement of precious metals such as silver and gold.
Silver Technical Analysis
Silver prices are pressing downwards, but there are formidable support levels close by which could prevent the metal from falling further. The 50-EMA line is situated at 17.62, followed immediately by support at 17.50. Given that silver has plenty of support nearby, we could see a recovery back to the 18.00 line or slightly above it. There is resistance at 18.60, followed by resistance at the round number of 19.00.
This article was originally posted on FX Empire
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