Silver Consolidates

Silver has consolidated around the level of 16.50 and has intermingled with all the important SMAs. On the one hand, it has been trading sideways for the better part of the year so far starting since February and still no sign of any breakout.

On the other hand, the long term bearish trend has seemingly come to a halt as the precious metal reached a low of 13.63 in 2015, went as high as 21.00 in mid 2016 and is now trading somewhere in between.

The price falls below the 50-, 100- and 200SMA and in order to break it, Silver needs to have a serious boost, which could most likely come from lower than expected US growth rate, increasing unemployment, which seems unlikely and what could be the most viable option - a rate in the interest rate which could depreciate the US dollar and make investors flee to the precious metal market.

Chart: XAG/USD D1