Silver Prices Steady After Dismal Week

London (Nov 11)  Silver has leveled off in Monday trade, after sustaining losses on Friday. In the European session, the metal is trading at $16.85, up $0.07 or 0.42% on the day.

Silver Looking up at 17.00 Level

Silver has pushed below the 17.00 level late last week. This is a significant development, as this line had remained intact since October 1. On Friday, the metal touched a low of 16.67, its lowest level since mid-August.

Trade Talk Optimism Sends Silver Reeling

Silver suffered a dismal week, plummeting 7.2 percent, as the metal had its worst week since October 2016. Gold prices were also sharply lower, as risk appetite has climbed, sending equity markets higher. There is renewed optimism that the U.S. and China are close to reaching an interim trade deal, known as “Phase 1”. This would allow the two countries to reach a limited trade agreement, while leaving the most intractable issues for another round of negotiations. Last week, the Chinese commerce ministry announced that the U.S. and China would phase out the trade war tariffs, but it did not provide a timetable for such a move. A new trade deal could significantly boost global trade, which has been damaged by the bitter trade war. Traders can expect silver prices to show volatility if there are further developments on the trade front.

Silver Technical Analysis

Silver is looking upward at the 17.00 level, after last week’s huge losses. On the downside, we find support at 16.50, which last saw action in early August. This is followed by support at the round number of 16.00. On the upside, 17.00 is under pressure. The 50-EMA, which is at 17.57, is the next resistance line. Higher up, there is resistance at 18.30.

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