Global equity markets were largely under pressure last night. Shanghai and Australian markets managed modest gains, while the Asian session was fairly quiet data wise. The European session features the January UK construction PMI, January Italian CPI and December Euro Zone PPI. United Kingdom construction PMI readings came in weak and down from last month.
While March Silver has spent the morning trade in the upper end of the range, building strength in the USD into nonfarm payroll reading could serve to knock silver back into negative territory. However, the USD remains stuck within the last two weeks trading range and that could cancel out the negative impact of early USD gains on silver to start the morning. We expect silver and other physical commodities to benefit from the recent Goldman comments talking about commodities being on the rise this year. They expressed long-term bullishness due to the likelihood of reflation. The recent weakness is equities should also provide some support to the metals because they will be seen as a safe haven. Support comes in today at 1710-1700 with resistance at 1735-1745. We would like to see a pop over 1755 to rekindle bullish forces.
Silver Mar ’18 Daily Chart