- GOLD and SILVER prices weakened a lot recently based on rumors that the Fed may be hiking interest rates soon.
- GOLD formed a new yearly low, and SILVER too faced a lot of heat and moved towards $13.95.
- In the US, the Chicago Purchasing Managers Index released by ISM-Chicago, Inc posted a reading of 48.7 in November 2015, compared with the forecast of a decline from 56.2 to 54.0.
- In Canada, the current account, released by Statistics Canada posted a deficit of 16.21B, compared with the forecast of -15.10B in Q3 2015.
SILVER dived recently and fell below the $14.00 support area. There was a bullish trend line formed on the hourly chart of SILVER, which was breeched to open the doors for more losses in the near term. The price declined as low as $13.94 where it found buyers and currently attempting to recover the ground.
However, it is finding strong offers near the 50% Fib retracement level of the last drop from the $14.37 high to $13.94 low. The stated fib level is also coinciding with the 100 and 200 hourly simple moving averages to act as a barrier.
On the downside, there is an open space with $14.00 as a support area.
Chicago Purchasing Managers Index
In the US today, the Chicago Purchasing Managers Index, which captures business conditions across Illinois, Indiana and Michigan was released by ISM-Chicago, Inc. The forecast was slated for a decline from 56.2 to 54.0 in November 2015. However, the decline in the index was even more, as it posted a reading of 48.7.
Overall, the outcome was negative for the greenback. We need to see how the market reacts and whether there is an upside move in SILVER or not moving ahead.
Overall, SILVER is facing a tough barrier near $14.15-20, and as a result, there may be a downside reaction.