Silver recovers losses after dismal US data

FXStreet (Mumbai) - Silver recovered part of its losses after the weak US advance retail sales data pushed safe haven assets higher.

The metal now trades 1.01% lower for the day at USD 16.985/Oz levels, after having recovered from the low of USD 16.54/Oz hit earlier today. The metal fell to the 100-DMA located at USD 16.55 levels, tracking the broad based weakness seen in the industrial metals after the World Bank revised its global growth forecast for 2015 lower to 3%. Silver, being used in the industrials, declined along with base metals. However, recovered after the December advance retail sales in the US declined 0.9%. A weak US data weakened Treasury yields and the US dollar, helping Silver recover its losses. However, the metal under performed Gold, as the bearish global growth forecasts continue to weigh on prices.

Silver Technical Levels

The immediate resistance is seen at 17.00, above which gains could be extended to 17.18 and 17.33 levels. Meanwhile, support is seen at 16.73 (5-DMA) and 16.55 (100-DMA) levels.