Posted 4th September 2024

Silver Price News: Silver Slips on Soft Data

Silver News
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This morning, silver is trading down below $28/toz on recent economic data that reaffirms a weak growth outlook. August Manufacturing PMIs for China, Japan, Australia and the Eurozone released on Monday, were all somewhat better than expected. However, with readings of 50.4, 49.8, 48.5 and 45.8 respectively the overall picture remained one of weak manufacturing activity.  A subsequent, disappointing US ISM Manufacturing PMI print for August (47.2) was barely improved from July’s seven-month low.

kinesis silver kag price on kinesis exchange
Kinesis silver (KAG) price – $/oz – on Kinesis Exchange

We would also note that copper – arguably a more economically sensitive metal than silver – has also performed poorly in recent days and is now trading close to the ‘growth scare’ levels of a month ago and c. 20% down from its May peak. In response, markets have edged up their bets for a 0.5% in the Fed Fund Rate on 18 September.

Accordingly, silver’s immediate technical position appears challenging. The metal is currently testing support at the 50% retracement of the 7 August-26 August low/high at $28.32/toz and there is only tentative oblique descending support at $27.86/toz. With the standard MACD line now descended below the signal line, momentum is not supportive, increasing the probability that ascending major oblique support at $27.07/toz and major horizontal support at $26.20 will come into play.

To the upside, we see proximate resistance from the 20-day Simple Moving Average, currently at $28.75/toz and the 38.2% Fibonacci Retracement of the 7 August-26 August low/high at $28.76/toz. Beyond this lies major horizontal resistance at $29.00/toz, the 50-day Simple Moving Average at $29.12/toz and oblique minor resistance at $29.15/toz. Further resistance is indicated at $29.77/toz (major horizontal), $30.03/toz (descending minor oblique), $31.01/toz (ascending minor oblique), $31.19/toz (descending major oblique) and $32.06 (major horizontal).

Significant events for silver investors going forward includes Australian Q2 GDP Growth on 4 September and German July Factory Orders on 5 September.

Mike is a market strategist and media commentator with 30 years of experience analysing precious metals markets.   He developed his expertise working as an investment banker in emerging markets such as South Africa, Russia and Chile. His focus on precious metals was extended through subsequent work within private wealth management and his own research consultancy.   During this time, he covered the gold, silver, platinum and palladium markets.

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