Silver faded from $15.19 highs but technicals lean bullish

• Gold has been faded on Wednesday due to a bounce in risk apatite which has sent stock prices and the US dollar sharply higher.
• In the Christmas Eve shortened session, a number of political headlines were dominating trade which has sent the price of gold and silver higher. Gold rallied from $1259 on Christmas Eve to $1279 today and silver from $14.37 to a high of $15.19. 

The price of silver was elevated on the back of risk-off flows into gold of which silver tends to track, heading into the Christmas break. For one, we had Trump and Treasury Secretary Steven Mnuchin tweeting while at the same time, investors continued to fret over downside risks to global economic growth. 

"The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can’t score because he has no touch - he can’t putt!",

Trump had tweeted.

Treasury Secretary Steven Mnuchin was tweeting that he had spoken with the CEOs of the country’s six biggest banks to assess the health of the banking system, raising concerns that the administration knows something the market did not.

Risks ahead

With the US government shutdown and pending Brexit risk on the cards in the New Year, there is likely to be plenty of volatility to come down the line for silver prices and the greenback. We have US nonfarm payrolls coming on in the first week of January as well. 

Silver levels

Silver has rallied through R3 but has been met with fierce selling pressure leaving a bearish upside wick on the Japanese candles with bears targeting the 23.6% Fibo located down at 14.88. A break there opens the pivot located at 14.77. RSI, however, is positioned with an upside bias. A break of recent highs, bulls can target 15.70.