Silver price (XAGUSD) is gaining today as traders react to the strong economic data from China and the US. The metal’s price is trading at $27.00, up by 1.10% from the Friday’s close. Gold, on the other hand, is trading at $1,935, up by 0.15%. while copper price is up by 0.20%.
Silver price is probably rising because of the recent positive economic data from the United States and China. On Friday, data from the United States showed that the unemployment rate dropped to 8.4% in August. That was better than the 9.6% that analysts were expecting. The positive employment data came in the same week that data from the US showed strong factory and manufacturing activity.
And earlier today, data from China showed that the country’s exports increased by 9.5% in August while imports fell by 2.1%. The country’s trade surplus narrowed to more than $58.9 billion. In the UK, data from Halifax showed that the house price index rose by 5.2% in August.
While the US dollar is stronger today, the positive economic data are positive for silver price because of its characteristics as an industrial metal. As such, when the economy does well, demand for the metal tends to rise.
The price of silver is also rising on a day that European stocks are bouncing back. In Europe, the FTSE 100, DAX index, and Euro Stoxx are up by near 1%.
Silver price technical forecast
The daily chart shows that silver price is trading at $27.00, which is slightly higher than the Friday’s low of $26.25. The metal has formed a symmetrical triangle pattern that is shown in black. It is also above the short and medium-term moving averages. Its volatility, as measured by the Average True Range (ATR) indicator has also dropped to the lowest level since August 7.
Therefore, the price is likely to remain within this channel as traders wait for the confluence level of the triangle pattern. If this happens, the key support and resistance levels to watch will be $23.40 and $30.00.