Silver Finds Support Ahead Of US Second 1Q GDP Data
Eyes will focus on the U.S. GDP second reading, as analysts predict to see a downside revision to minus 0.8 in the quarter through March from a preliminary of 0.2 percent expansion.
If the reading matched forecasts, the dollar may face more downside pressure, thereby giving the chance for silver and other dollar-priced commodities to lower their losses.
An interest rate hike will occur this year if the economy shows progress, Fed Chairwoman Janet Yellen said last week.
Data released this week from the world’s biggest economy were mixed, but the dollar rallied to a 13-year high against the yen and remained firm versus other major currencies.
As of 11:11 GMT, the dollar index, which tracks the green currency’s movements versus a basket of major currencies, retreated from a peak of 97.94 to hover around 97.02.
Silver traded higher around $16.70 an ounce, compared to the session’s opening at $16.57.
Gold ticked up to trade around $1188.92, yet set for its second straight weekly decline.
Among other precious metals, platinum slipped to $1,113 an ounce and palladium inched down $782.50 an ounce.
Mainly, physical demand on jewelry, bars and coins tend to be week during the summer months.
By looking at the daily chart for the silver, it is clear that the price found some ground from the previously breached resistance line that has turned into support.
Silver, meanwhile, trades between SMA 20 and SMA 50, where the Stochastic Oscillator momentum indicator points to a potential rebound after it fell to oversold areas.