Silver price (XAGUSD) trades higher today amid rising fears on the coronavirus spread. The virus has killed 80 people and infected more than 2700. The silver price breaks above the resistance at $18.12 that we have discussed the previous week and the bulls are in control.
IMF lowered this year’s global growth estimate to 3.3 percent from 3.4 percent previous. For the USA it estimates 2020 growth at 2.0% from 2.1%. For China the IMF growth forecast for 2020 estimated at 6.0% from 5.8%.
Silver is getting a hand by the expectation that the Fed will keep interest rates unchanged at its policy meeting before the end of January.
The silver price makes fresh two week highs today. Silver formed a strong base at the 100-day moving average and managed to rebound, supported by the risk-off sentiment. The technical outlook is clearly positive for the silver price now as it trades above all significant daily moving averages.
On the upside, the immediate barrier for silver price will be met at $18.33 the daily high. If silver price breaks above, the next resistance to watch is at $18.49 the high from January 20th session. The next critical resistance stands at $18.84 the high from January 8th in the aftermath of Iran-USA tensions.
On the downside, initial support for silver (XAGUSD) will be met at $18.08 the daily low. Next support zone to watch on the downside stands at $17.52 the 100-day moving average. More bids would emerge at the 50-day moving average at $17.417.