Last week precious metal saw spectacular price move silver rose almost 2.48% and close around $15.67. Friday’s NFP (Non-Farm payroll) and unemployment rate data came below than consensus. US manufacturing PMI came at 54.1 below estimates 57.7.
Fed chairman Powell’s dovish comments for a future rate hike will depend on market condition and now near status quo situation further.
This push dollar index lower and safe heaven precious assets like Gold and Silver rose sharply. Gold mostly traded positive near $1300 mark.
Most investment bank firms and hedge fund houses have raised their target and hold a positive outlook on precious metal for the year 2019.
US president’s comments on government partial shutdown and the US & China trade war-related news also have an impact on Dollar strength.
Silver which is considered to be correlated to Gold underperforming quite some time which can be accessed by their percentage return for the same time span.
Silver still have some room for price rise as comparing Gold.
Silver on weekly charts earlier break below from symmetrical triangle and found support near $14, just near the lower end of triangle symmetrical triangle
Descending trend line, which forms by joining highs of triangle now act as resistance? Which clearly visible as by rising price stall here for some time.
To continue further up move price need to break out from this zone of $15.80-$15.85 with good volume. We assume that this breakout can occur, to confirm our view we look at momentum indicator RSI which rising with price rise support strong momentum in the upside.
Price can rise to $16.25-$16.30 after resistance zone of $15.80 taken out if not then price slide to test strong support of $50 from where it started really.
Major support resistance level as below:
Economic Events to Keep Eye:
In the coming day’s major key economic data like CPI m/m and core CPI m/m data of the US and fed minutes of the meeting will be released.
|9-Jan-19||07:30||USD||President Trump Speaks||–||–|
|10-Jan-19||00:30||–||FOMC Meeting Minutes||–||–|
|10-Jan-19||22:30||–||Fed Chair Powell Speaks||–||–|
|Core CPI m/m||0.20%||0.20%|