Silver Prices Resume Uptrend as Technical Traders Eye Key Hurdles

New York (May 25)  Silver prices rose Thursday, as the multi-week uptrend resumed after a series of lateral moves earlier in the week.

Silver for July delivery climbed 5 cents, or 0.3%, to $17.17 a troy ounce at 7:21 a.m. ET. The contract traded within a daily range of $17.14 and $17.26.

The gains are part of a two-week uptrend that has involved a re-calibration of precious metals after a series of sharp declines. Silver’s continued recovery hinges upon a few technical hurdles that, if breached, could lead prices back toward the April swing high north of $18.50. Those technical hurdles correspond with the 50% and 61.8% Fibonacci retracement levels, which are roughly situated between $17.40 and $17.70.

Gold prices also bounced back Thursday after drifting lower earlier in the week. The June futures contract was last up $3.70, or 0.3%, at $1,256.70 a troy ounce on the Comex division of the New York Mercantile Exchange.

A weak U.S. dollar has been one of the chief catalysts behind the recent uptrend in precious metals. The U.S. dollar index, which trades against an exchange-weighted basket of six currencies, was last down 0.1% at 97.17.

The dollar failed to rally after the minutes of the latest Federal Reserve meetings signaled that policymakers would strongly consider raising interest rates at next month’s meeting.

“Most participants judged that if economic information came in about in line with their expectations it would soon be appropriate for the committee to take another step in removing some policy accommodation,” the minutes of the May 2-3 FOMC meeting showed Wednesday.

The Federal Open Market Committee (FOMC) will hold its next policy meeting June 14-15 in Washington.

Source: EconomicCalendar