Silver prices are trapped in the $15.11 to $15.46 range. A breakout from this range is needed to be able to determine the next step for prices. On a break to the upper limit at $15.46, silver may reach the February 14 high of $15.79, while a break to the lower limit of $15.46, may trigger a decline to the next low in line, namely the February 8 low of $14.91.
Should we expect a major rally today similar to the one experienced last week? I do see this as unlikely today given that stock markets are clawing back losses, which in turn is lowering the demand for safe haven assets such as silver. However, later this week action may pick up as it would not surprise me if stock markets resume their bearish trends.
The most likely trigger for a sustained rally (either bullish or bearish) is the January Fed Minutes update, to be published tomorrow evening. Followed by U.S. Industrial production earlier the same day, Philadelphia Fed index on Thursday, and finally U.S. CPI on Friday.
Today, Empire Manufacturing is on tap at 13:30 GMT, with a Bloomberg Survey projecting an outcome of -10.50, from the shocker drop of -19.37 in January. It is indicators like this one that if continuingto drop to recessionary levels, will persist in keeping the multi-week trends bullish for silver prices.
See the DailyFX Analysts' 1Q forecasts for the Dollar, Euro, Pound, Equities and Gold
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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