The main factor, affecting the price of precious metals, is expectations that the Fed would raise its interest rates before the year is out. Thus, on Monday, December silver futures declined by 15.90 cents.
Nevertheless, much will depend on the Non-farm Payroll data, due on Friday in the US. If the indicator comes in below the forecast, the Regulator may postpone a rate hike until March 2016 amid weak inflation and economic statistics.
As long as silver is used as a raw material in the industry, the XAG/USD pair will be under pressure due to a slowdown in Chinese, European and American economies.
Support and resistance
The XAG/USD pair has been declining for three weeks already. The price is trading below key resistances 15.90 (ЕМА200), 15.60 (ЕМА144 on the daily chart), at the level of 15.30 (0.0% Fibonacci).
OsMA and Stochastic indicators on the hourly, 4-hour, daily and weekly charts recommend short positions.
Support levels: 15.30, 15.00, 14.85, 14.50, 14.00.
Resistance levels: 15.60, 15.90.
Short positions can be opened from the level of 15.15 with targets at 15.00, 14.85 and stop-loss at 15.30.
Long positions can be opened after the breakout of the level of 15.40 with targets at 15.60, 15.80 and stop-loss at 15.20.