Silver Analysis

Fundamental News & Impact

Silver was one commodity which follows gold trend but from quite some time it is under performing Gold.

Recent weakness in Dollar index and trade war related news weighs on stock market. This regains safe heaven demand as for Gold which trade near $1288.

Silver considered as precious and industrial metal also. Demand for silver can rise after high prices in Gold as alternative option.US fed future rate hike will be limited and depends on US growth and inflation data.

Long term bond yields falling and green back US dollar weakening surge precious metal prices.

Hedge funds that actively trade on Gold and Silver on basis of GOLD to silver ratio building their bets on under-performing silver

Economic data like Unemployment rate and non farm payroll data came supporting and in line with Fed assumption

Technical Outlook and Analysis

Technically silver breakouts from price consolidation band to mark year end trade near above $15.00 mark. The $15 level of course is psychologically important, and structurally as well. It has been lagging the gold market which has of course broken out already.

Break out target comes towards the $15.70 to $16 level next. Ultimately, I think that we break above there and go to the $17 level as well.

Above $16 new price target range trajectory range comes out.

Price recently broke 200 days simple moving average on daily charts and approaching major resistance level of $15.50-$15.55 break of it can raise price to $15.90-$16.

Major support and resistance levels as below:

  S3 S2 S1 Pivot Points R1 R2 R3
Silver 14.459 14.744 14.919 15.204 15.489 15.664 15.949


Economic Events to Keep Eye

In coming day’s major key economic data of US will be released like manufacturing PMI, Hourly earnings, Nonfarm payroll, and unemployment rate. Data will have major impact on precious metal prices like Gold and Silver.

Also Dollar index can have volatile move ahead of data.

Date Time Currency Data Forecast Previous
Jan 3 /19 3:00 PM USD ISM Manufacturing PMI 57.7 59.3
Jan 4/19 1:30 PM USD Average Hourly Earnings m/m 0.30% 0.20%
Non-Farm Employment Change
178K 155k
Unemployment Rate
3.70% 3.70%

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