Silver Higher on Thursday
Silver prices are seeing better demand today, tracking the move higher in gold with both metals seen benefiting from a weaker US Dollar. The greenback slipped from 4-month highs today despite a set of better-than-forecast data yesterday. Both the ADP jobs number and the ISM services reading saw upside surprises, offering furtehr pushback against December easing expectations. However, with the US govt shutdown attracting greater focus (now the longest shutdown in history), USD has weakened creating room for a push higher here in the metals.
Correction From Highs
Silver prices remain down from the YTD highs following a correction lower over the last month as the USD bounced back. Along with gold, silver prices saw a more than 15% correction lower but remain firmly higher on the year. Indeed, with price finding fresh demand at the 45,8567 level, the bullish outlook remains intact, and bulls will be looking for fresh upside momentum to return if USD continues to weaken here.
USD Remains Key
Near-term, USD flows should remain the key driver for silver prices. With that in mind, focus will be on a slew of Fed speakers due later today with USD likely to soften furtehr if we hear any dovish support. On the other hand, if we hear any hawkish commentary, this could help revive the greenback, capping the rally in silver for now.
Technical Views
Silver
The correction lower in silver has stalled for now into a retest of the broken bull channel highs and the 45.8567 level. While this area holds as support, focus is on a resumption of the bull trend with 49.5217 the local hurdle for bulls to overcome and turn focus back to YTD highs. For now, the range persists with momentum studies coming up off weak levels.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.