Silver Punches Above $18.00

Silver has embarked on a late-week rally and punched above the symbolic $18.00 level on Friday. In the European session, the pair is trading at $18.04, up $0.23 or 1.31%.

Silver Climbs to 4-Week High

After trading sideways for four straight sessions, silver has flexed some muscle. The metal climbed 1.4% on Thursday and has added another 1.3% in Friday trade. Earlier on Friday, silver punched past the $18.00 level, which has psychological significance.

Soft U.S. Durable Goods Orders Boosts Silver

U.S. durable goods orders reports disappointed in September.┬áDurable goods orders disappointed, with a decline of 1.1%. This marked the first contraction in four months. The core reading came in at -0.3%, compared to a 0.5% gain in the previous release. As well, manufacturing PMI came in at 51.5, which is barely in expansion territory. These weak releases underscore a weak manufacturing sector, which has weighed on the economy. Precious metals such as gold and silver have taken advantage, as concerned investors moved into safe-haven assets after the soft economic numbers. It is interesting to note that silver’s recent path has mirrored that of gold. On Thursday, gold broke through a key barrier on Thursday, pushing above the $1500 level. This followed a week of sideways trading.

Silver Technical Analysis

After four successive sessions of sideways trading, traders and investors were treated to some movement from silver on Thursday. The upward trend has continued on Friday and has broken above resistance at the round number of 18.00. This is a major development, and if silver can close the week above the 18.00 line, it has room to make significant gains next week. The 50-EMA is providing support just above 17.50. Further down, there is support at 17.00, followed by the 200-EMA at $16.37.
XAG/USD 1-Day Chart