Silver Prices Flat, U.S. Manufacturing PMI Looms

Silver continues to drift this week. In the European session, the metal is trading at $17.16, up $0.06 or 0.32% on the day.

Investors Await U.S. Manufacturing PMI

The key event on Friday is the ISM Manufacturing PMI, which should be treated as a market-mover. The index has been hovering close to the 50-level, which separates contraction from expansion. In September, the index rose to 51.5 pts, marking a 6-month high. Still, this points to stagnation in manufacturing, which has been dampened by the ongoing trade war with China and weak global economic conditions.  The PMI is expected to remain at 51.5 pts in the upcoming release.

Buyers of silver and other precious metals continue to sit on the sidelines, as there have not been any major geopolitical or macroeconomic developments this week. Will this lack of movement continue? Investors are keeping an eye on the U.S-China trade talks, which have been up-and down. Any announcements about how the talks are progressing could have a significant impact on risk appetite and silver prices.

Silver Technical Analysis

Silver continues to drift this week, as the metal has been unable to pull away from the 17.00 level. However, the lack of a trend for over a week could signal that silver is due for a breakout in the near future. Note that silver remains sandwiched between the 50-EMA and 200-EMA lines.

There is immediate resistance at 17.25, but silver is showing little appetite in testing this line. Close by, the 50-EMA line is at 17.41, which could serve as short-term resistance. Above, we find resistance at 17.75.

On the downside, the 200-EMA is providing support at 16.59. Close by, there is support at the round number of 16.00. The silver price forecast remains neutral.