Silver prices taking a beating on the trade-news of the day

  • Silver prices taking a baing on the trade news sentiment while the US dollar stabilises.
  • Trump's trade-related tweets have been a catalyst for much of the markets risk appetite in 2019, but 2020 looks more related to the Fed. 

The trade-news of the day is helping to put pressure on the precious metals, with silver suffering the worst single day in over a month. XAG/USD is down 1.90% at the time of writing, having travelled from a high of $17.32 to a low of $16.80. 

Silver is taking up the brunt of today's positive trade news story from Bloomberg which cites people familiar to the mater who said that "China is moving closer to agreeing on the amount of tariffs that would be rolled back in a phase-one trade deal despite tensions over Hong Kong and Xinjiang."

Then, with respect to yesterday's risk-off headlines, Bloomberg wrote,

"The people, who asked not to be identified, said that U.S. President Donald Trump’s comments Tuesday downplaying the urgency of a deal shouldn’t be understood to mean the talks were stalling, as he was speaking off the cuff. Recent U.S. legislation seeking to sanction Chinese officials over human-rights issues in Hong Kong and Xinjiang are unlikely to impact the talks, one person familiar with Beijing’s thinking said."

At the same time, the US dollar has stablised in the 97.40/60s following a further deterioration of strength earlier in the day which sent the mightly buck to the lowest levels in a month. 

Fed's asymmetric reaction function

Meanwhile, analysts at TD Securities, (TDS), pointed out that the Fed's asymmetric reaction function suggests they will either cut rates further if growth disappoints or stay the course if growth recovers, ultimately pressuring real rates further." The comments follow a switch-up in US data, notably in the manufacturing sector from which arrived below the mark most recently, promoting a series of comments from US President Trump who blamed the Fed and the strength of the US dollar for the industry decline. 

The Trade-Related Twitter Index and precious metal correlations

On the topic of Trump's tweeting, the TDS analysts explained, "Our proprietary indices tracking President Trump's tweets find that the 20-day rolling count of a Trade-Related index — which includes tweets with such terms as "dollar", "Trade", "farmers", "China" or "tariffs" — is actually hovering near its yearly lows, while monetary policy-related tweets (with words such as "economy", "inflation", "Fed" or "Powell") have recently been on the rise," the analysts added and continued, "The latter has implications for gold vol, which is already creeping higher in response to the uptick in monetary policy related-tweets, although trade-related tweets have had a dampened effect of late given that their frequency remained near their yearly lows over the last 20d." Note, the analysts talked about gold here, but the same could be said for silver. 

"That being said, the trade-related twitter index has room to grow as we approach Dec 15 without a 'phase one' deal signed as of yet. In this context, we're confident that the fundamental backdrop will result in higher prices into next year,"

the analysts concluded. 

Silver levels


Today last price 16.84
Today Daily Change -0.33
Today Daily Change % -1.92
Today daily open 17.17
Daily SMA20 17.03
Daily SMA50 17.41
Daily SMA100 17.39
Daily SMA200 16.21
Previous Daily High 17.2
Previous Daily Low 16.86
Previous Weekly High 17.12
Previous Weekly Low 16.61
Previous Monthly High 18.22
Previous Monthly Low 16.61
Daily Fibonacci 38.2% 17.08
Daily Fibonacci 61.8% 16.99
Daily Pivot Point S1 16.95
Daily Pivot Point S2 16.74
Daily Pivot Point S3 16.61
Daily Pivot Point R1 17.29
Daily Pivot Point R2 17.42
Daily Pivot Point R3 17.63



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

AUD/USD: Bears attack 0.7700 ahead of China GDP

AUD/USD extends Friday’s downbeat momentum towards the 0.7700 threshold at the start of Monday’s Asian session. The Aussie pair declined the most since late October the previous day as the US dollar benefitted from the risk-off mood.


GBP/USD: Battles 1.3600 inside monthly rising wedge on 4H

GBP/USD fails to keep the uptick beyond 1.3606 during the initial Asian trading on Monday. The cable dropped to the lowest since January 12 on Friday but couldn’t slip beneath the 100-bar SMA.  The rising wedge formation on ...


Gold: Further decline toward $1,800 remains on the cards

Gold failed to stage a convincing rebound this week. After losing more than 2% in the previous week, the XAU/USD pair extended its slide on Monday and touched its lowest level since early December at $1,817. 

Gold news

Darkest before dawn

The upcoming economic news is likely to be dreadful, and if it is not dreadful, it will be mostly ignored. This includes the release of the preliminary January PMI figures at the end of the week. Japan is extending its national emergency to another five prefectures, which collectively account for over half of the nation's GDP.

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News