XAGUSD: Silver Prices Higher, Strong Base at $17.57
Silver price (XAGUSD) trades 0.67% higher at $17.89 as investors position themselves to get more clarity on the terms and details of phase one of the trade deal which is due to be signed later today. Precious metals and safe-haven assets were under selling pressure amid optimism about China-US trade deal as White House lifted its designation of China as a currency manipulator.
On the data front the NY Empire State Manufacturing Index improves to 4.8 in January from 3.3 in December and above the expectations of 3.55. The Producer Price Index (month over month) came in at 0.1%, below the estimates of 0.2% while the yearly reading came in at 1.3% in line with forecasts.
The silver price tested yesterday the 100-day moving average and managed to rebound from 2020 lows at $17.58. The technical outlook is bullish for silver despite the recent sharp correction from the highs after the killing of Iranian General Souleimani.
On the upside initial resistance for silver price stands at $17.99 the daily top. If XAGUSD price breaks above the first resistance the next level to is at $18.07 the high January 13th session. The major supply zone will be met at $18.84 the high from January 8th.
On the other side, first support for silver will be met at $17.71 the daily low. Next support stands at $17.579 the 100-day moving average which if breached might cancel the bullish momentum which started in early December. Bears will take control below $17.57 and might push price lower to $17.27 the 50-day moving average.