Silver Prices Steady Below $18
On Monday, silver prices barely changed due to fewer people trading while investors had their attention on an overwhelming amount of economic data.
March futures for silver were at $17.94 per troy ounce, practically the same as the previous close. Overnight, prices were fluctuating within a small range of $17.89 and $18.02. The precious metal is trading at a three-month high after six weeks of gains. Prices are up over 12% for the year.
Silver is in the middle of a strong uptrend, with the RSI coming close to oversold levels. Price action is also on the rise, with the 20-day SMA combining on the 100-day SMA.
Gold futures for April went down 0.4% to $1,230.70 per troy ounce. Overnight, prices were fluctuating between $1,229.20 and $1,234.40.
Following an erratic end to 2016, precious metal values have been reversing this year. The reverse is due to a weaker dollar value and fears of political tensions between the US and many other countries. President Trump has talked down on the U.S. dollar and is vowing to stop immigration from high-risk countries and renegotiate existing trade deals.
On January 31, after plummeting to a three-month low, the U.S. dollar has increased in the last eight sessions. The dollar index, who tracks the U.S. currency and compares it to six other main currencies, is now trading at over three-week highs.
Monday there were no significant economic data releases on the schedule. Tuesday the action should start moving with Eurozone GDP and U.S. inflation.
The Commerce Department will be reporting on U.S. consumer inflation and retail sales Wednesday. The Federal Reserve will also be releasing their monthly report on industrial production. In a separate case, Janet Yellen, Federal Reserve Chair, will testify on the economy and monetary policy in the U.S. to the House Financial Services Committee.