NEW YORK ( TheStreet) -- Silver is expected to remain bullish this week, supported by technical indicators, a weak dollar and weaker China economic data.
The bearish pattern in the dollar will likely continue from the past week, but could be limited this week due to the Michigan confidence index, falling jobless claims, and rising retail sales. A weak dollar will continue to spur the demand for silver, along with the yellow metal. Silver could see some lively sessions this week on the Fed's decision to ease money supply, thus undermining confidence in the U.S. dollar.
Meanwhile, European macroeconomic fundamentals are expected to improve, as indicated by the 1.7% expansion in Germany's GDP growth in the second quarter. Trade surplus and current account surplus could improve further, strengthening the euro against the dollar.
Among data releases scheduled for the week, China's economic data in the form of rising inflation, lower industrial production and retail sales, narrowing trade surplus and declining new consumer loans may knock the markets. Safe haven demand for silver and gold will likely improve, boosting silver prices.
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