Silver Price Forecast: Here’s Why $26 Remains Evasive

Summary:

Silver price is trading above the resistance level of $25.50. Investors are now keen on the US retail sales and jobless claims for cues.

Silver price has managed to move past the resistance level of $25.50. The precious metal has found support in the declining US bond yields and the greenback. On Thursday, the benchmark 10-year US treasury yield was down by 1.5% at 1.61. It is struggling to rebound after its fall from the key level of 1.70 earlier in the week.

Investors are now keen on the direction that the US dollar will take after the release of the US retail sales and jobless claims data. The greenback is currently down by 0.02% at 91.62. Over the course of the week, the currency has declined by around 0.78%. Better-than-expected numbers are bullish for the US dollar; which could lessen the chances of silver price hitting $26 in the near term.

Silver Price Technical Outlook

Silver price is trading higher following the decline in US treasury yields and US dollar. On Thursday, the precious metal is up by 0.98% at 25.62. It is currently above 25.50, which has been a key resistance level for three weeks now. On a 4-hour chart, it is trading above the 25 and 50-day exponential moving averages.

As investors await the US retail sales and jobless claims numbers, 26 remains an evasive level for the bulls in the market. Better-than-expected figures will help strengthen the greenback, which is a bearish catalyst for the precious metal. If that happens, silver price is likely to pull back to below 25.50.

However, if the US bond yields remain on a decline, it is likely to yield enough momentum for the bulls to hit 26. On the lower side, the support levels to watch out for remain at 25.16 and 24.61.