Silver Prices Hold Small Gains Today as Holiday Week Begins
Chicago (Dec 23) Silver prices are holding onto very small gains in morning trading today. Positive consumer data had pushed the metal in negative territory earlier. Silver prices are trading up $0.02 at $19.48/oz.
Precious metal investors have seen a whirlwind in prices recently. The Fed’s decision to taper sent gold and silver breaking sharply to the downside. Silver was able to hold the $19 level and bounced off the $19.15 level. It’s probably going to be a rough patch for silver moving forward. There’s little reason for stock investors to flock to precious metals such as gold and silver as long as the economy continues tracking higher.
The latest economic data today is helping push the Dow towards more records. Consumer spending and sentiment were both positive today. Positive consumer spending is good news for economists who want to see another good showing for GDP in the fourth quarter. Third quarter GDP hit a home run with a 4.1% rate.
Silver bulls managed to hold $19.15/oz right after the Fed announced a taper. We’ll see if it holds next time it heads that way. The more positive data there is, the more downward pressure silver will face.
This week will be shortened by the Christmas holidays. Tomorrow will be a half day and the market will be closed on Wednesday.