Silver continues to slightly strengthen against USD. By now the price has broken down the of 5/8 Murrey or 16.99. If it consolidates above 17.00, the next target will be 17.18.
The demand for silver was caused by the publication by Fitch agency. It stated that Trump’s tax reform was far from being certain and could undergo numerous changes, although the Republicans claimed they were ready to resolve this issue until the end of the year.
On the other hand, certain outflow of cash from precious metals could be caused by further strengthening of digital currencies. The chairman of Leo Melamed stated that bitcoin could become a new class of assets like gold or silver . The trading site also promised to release by the end of the year. Many investors are very skeptical about that and believe the digital currencies market is just another bubble and precious metals will remain the instruments for asset preservation.
is at 200 points and indicates possible correction of the asset from current levels.
Resistance levels: 17.18, 17.35.
Support levels: 16.99, 16.88.
Long positions may be opened at the current market price with target at 17.18 and stop-loss at 16.83.