13 Jan 2015
Silver flirts with USD 17/Oz level
FXStreet (Mumbai) - Silver prices extended gains in line with Gold prices, after having breached the 100-DMA located at USD 16.56 to trade at USD 17/Oz levels.
The metal struggled near the 50-DMA for six consecutive sessions before rising well above the same during the European session today. The rise in Silver is more or less in line with the gains witnessed in the yellow metal. However, being utilized in industries, gains in Silver may be capped due to gloomy outlook of the global economy. Nevertheless, prices are likely to remain well supported due to its semi safe haven status. A correction in the US dollar coupled with continued risk aversion in the equities may push Silver prices to December 2014 high of USD 17.33/Oz levels.
Silver Technical Levels
The immediate resistance is seen at 17.03, above which prices could test 17.33(Dec 2014 high). Meanwhile, support is seen at 16.78 and 16.56 (100-DMA) levels.
The metal struggled near the 50-DMA for six consecutive sessions before rising well above the same during the European session today. The rise in Silver is more or less in line with the gains witnessed in the yellow metal. However, being utilized in industries, gains in Silver may be capped due to gloomy outlook of the global economy. Nevertheless, prices are likely to remain well supported due to its semi safe haven status. A correction in the US dollar coupled with continued risk aversion in the equities may push Silver prices to December 2014 high of USD 17.33/Oz levels.
Silver Technical Levels
The immediate resistance is seen at 17.03, above which prices could test 17.33(Dec 2014 high). Meanwhile, support is seen at 16.78 and 16.56 (100-DMA) levels.