Karachi, January 09, 2019 (PPI-OT): Silver
Silver had a good day yesterday, even though it fell. This is because not only did it pull back, but it also managed to find support. By doing so, at roughly the $15.50 level, it looks as if there is still a significant amount of tenacity to the bullish pressure, and that of course is going to be a good sign for investors overall. At this point it is likely that it will continue to see a lot of “buying on the dips”, as there are a lot of pressures on not only the US dollar, but there could be a bit of an argument for a “run to safety” feel around the world. The $16 level above was the initial target, which makes sense considering that it had previously been in a $1.00 consolidation area and extrapolating that higher as a projected move had us looking at that level. Ultimately, this market will probably continue to see buyers on dips, as silver has formed a huge rounded bottom.
Silver prices inched up 0.1 percent to $15.66 per ounce
A higher dollar makes silver more expensive for holders of other currencies
The U.S dollar index higher on a corrective bounce after hitting a two-month low
Gold will continue to shine as a valuable portfolio hedge in 2019
March Comex silver was down $0.046 at $15.71 an ounce
Silver prices are modestly lower in early-afternoon U.S. trading yesterday. The safe-haven metals are being pressured by upbeat investor attitudes early this week. Still, the bulls can argue the price weakness in both metals is just a normal corrective pullback following recent gains that pushed silver to a five-month high late last week.
World stock markets are being boosted this week on perceived progress on U.S-China trade talks presently taking place in Beijing and ideas of a more dovish Federal Reserve monetary policy in 2019.
The U.S government shutdown is into its third week, but the matter is garnering less attention from the marketplace and is not a front-burner issue. The outlook on silver remains positive for this year as fears of a global economic slowdown continue to weigh on investor sentiment and as volatility picks up in equity markets.
Silver futures tilted lower in American trade away from July 13 highs as the dollar index rose off October 22 lows, following earlier US data, and amid ongoing US-China trade talks in Beijing to solve the dispute between the world’s two largest economies.
Silver futures due in March shed 0.23% to $15.72 an ounce off six-month highs, while the dollar index added 0.19% to 95.84 away from three-month lows.
Earlier US data showed an index tracking job opportunities fell to 6.89 million from 7.13 million in October, missing estimates of 7.07 million, while another tracking consumer crediting fell to $17.3 billion from $25.4 billion in October.