Silver prices may have finally left the range of the last few days and appear to be heading for the December high of $14.58. This makes sense from a risk/reward ratio perspective and highlights mydaily outlook posts published over the last few days. I will remain bullish as long as the January 22 low of $14 holds as a support.
When and if silver prices breach the December high, I would expect a further bullish momentum, taking price to $14.90. This is being supported by the ever-increasing gold prices and my latest fair-value-estimate suggests that silver should be trading at $15.02 on gold prices trading at or above $1129.86.
Several key reports are also on tap today. First out is U.S. ADP, which is expected to print 193K, followed by the ISM Non-Manufacturing index which is expected to soften to 55.1 from 55.3. Strong reports may strengthen the Dollar and trigger lower silver prices, while softer readings may weaken gold and therefore boost silver. For a complete list of today’s economic events please see our calendar.
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Silver Prices | FXCM: XAG/USD
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com
Contact and follow Alejandro on Twitter: @AlexFX00
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