Silver Price: More Sellers To Step In On a Break To The $15.20 Low
It’s worth noting that gold prices have dropped sharply this week and are trading at $1,118. The relationship between gold and silver prices during 2015 dictates that silver should be trading closer to $14.95. This is based on a simple linear regression model using daily prices.
From a technical point of view, a break to yesterday’s low of $15.19 will bring these assets more in line with the linear regression model estimation.
An actual breakout and survival of the last few days bearish silver trend will depend on two key risk events. U.S. ADP employment change and U.S. ISM services. Both are on tap this afternoon and they will probably need to meet expectations for silver to remain bearish.
Upcoming Risk Events (GMT)
- 13:15 U.S. ADP Employment Change, est. 180k
- 13:30 U.S. Trade Balance, est. -$41b
- 14:45 U.S. Markit US Services PMI (Final), est. 54.5
- 15:00 U.S. ISM Non-Manf. Composite, est. 56.5
Silver Prices: Bearish Below $15.45 and I assume that price will slide on a break of $15.19
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
Data Source: Bloomberg, Own Estimations
--- Written by Alejandro Zambrano, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.