Karachi, January 04, 2019 (PPI-OT): Silver
Silver markets continue to show signs of strength during the trading session yesterday, reaching towards the $15.70 level. The market looks very likely to continue to be choppy, and it would say that it is a little bit overbought at this point. It would not be surprised at all to see some type of pullback, but the $15 level underneath should be massive support. Ultimately, that could be a nice buying opportunity. If it break down below the $15 level that would obviously change quite a bit. On a break down below the $15 level, then it would be testing significant support this below there as well. Silver has legs at this point, but it may have simply just got a bit ahead of ourselves and momentum probably will start to struggle a bit at these lofty levels. The $16 level above is massive resistance, so it may take a bit of work to finally break above that level.
As 2018 drew to a close, the prices of Comex silver began to move higher
U.S stocks fell back lower soon thereafter, silver regained its price advances
Silver declined on slightly reduced orders from industrial units and coin makers
March Comex silver was up $0.121 at $15.77 an ounce
Profit-booking at prevailing levels mainly pulled down silver in futures trade but a firm trend in the overseas limited the losses to some extent
Silver has followed suit, and both metals look like they will continue to move higher until further notice. Silver will find resistance at some point. These levels would be perfect spots for the metals to take a breath and pull back a little. Another major supportive factor in 2019 is the expected slowdown of the global economy.
There will be a pullback but that should be used as an opportunity to buy more or enter for the first time. Until further notice, both gold and silver are headed higher and are approaching bull markets.
Silver prices are scoring modest gains and pushed to a five-month high today. U.S stock indexes rebounded a bit from their solid overnight losses which in turn prompted the silver markets to back down modestly from their early highs.
Silver futures rose in Asian trade to July 13 highs, while the dollar index inched higher for the day, ahead of crucial US labour data later today. Silver futures due in March fell 0.46% to $15.87 an ounce, while the dollar index rose 0.09% to 96.36.
Now investors await the US payrolls report, with the unemployment rate expected at 3.7% for the fourth straight session near five-decade lows, while average earnings are estimated with a 0.3% increase, up from 0.2% in November.
The economy is expected to have added 179 thousand new jobs last month, up from 155K in November. While a US government shutdown is in its second week as US President Donald Trump and Democrats fail to reach a funding agreement on the border wall with Mexico.