Silver Stuck at 17.00 as Drifting Continues

Silver prices are showing little movement on Thursday. In the European session, the metal is trading at $17.05, down $0.08 or 0.49% on the day.

Silver Shrugs After Fed Minutes

The Federal Reserve minutes of the October meeting failed to garner much of a reaction from precious metals, as both gold and silver were unchanged on Wednesday. Policymakers said that the Fed would take a break from recent rate trimming, unless there was a significant change in economic conditions. Although the Fed cut rates in October for a third straight time, that cut was accompanied by hawkish language, as the Fed sought to reassure investors that the U.S. economy was in good shape, despite the rate cut. The minutes reiterated that economic conditions were positive, with an outlook of moderate growth, a robust labor market and inflation close to the Fed’s target of 2 percent.

Ahead – U.S. Manufacturing PMI

The U.S. will release ISM Manufacturing PMI for October on Friday. The index rose to 51.5 pts in September, marking a 6-month high. Still, this points to stagnation in manufacturing, which has been dampened by the ongoing trade war with China and weak global economic conditions. The index is expected to remain at 51.5 pts in the upcoming release.

Silver Technical Analysis

Silver continues to drift this week, as the metal has been unable to pull away from the 17.00 level. However, the lack of a trend for over a week could signal that silver is due for a breakout in the near future. There is immediate resistance at 17.25, but silver has not shown much appetite in testing this line. Close by, the 50-EMA line is at 17.37, which could serve as short-term resistance. This is closely followed by the 50-EMA, which is currently at 17.38. Above, we find resistance at 17.75.

On the downside, there is support at 16.50. Note that the 200-EMA is currently at the same level. Below, there is support at the round number of 16.00. The silver price forecast is neutral with regard to the trend.