silver price
In Friday’s session, silver price is up by 0.07% at 25.0755. This is after the decline to $24.40 on Thursday. While the precious metal is back up above the $25 mark, it remains on a downtrend. Over the past month, it has declined by around 13%.
The strengthening of the US dollar has largely contributed to the drop in silver price. Notably, silver’s downtrend began in late February. This period was also the beginning of the greenback’s uptrend from $89.70, its lowest level since the beginning of the year, to the current 92.87. A strengthening US dollar has a negative impact on silver price as it lowers the metal’s demand by making it more expensive for buyers with other currencies.
However, the easing of treasury yields is offering support to silver price. High bond yields offer support to the greenback. After hitting its 14-month high two weeks ago at 1.75, 10-year yields have since eased to the current 1.67. Nonetheless, the yields’ 2.4% rebound on Friday’s session is exerting pressure on the metal’s price.
On an hourly chart, silver price has formed an inverted head-and-shoulder pattern that spans over the past four sessions. Besides, it is trading slightly above the 20 and 50-day exponential moving averages at $25.21. However, the precious metal is still below the 200-day EMA. The price is likely to drop to around $24.82 before moving back up. On the upper end, the target will be $25.45. However, the uptrend will only be substantiated once the price moves past the 200-day EMA.
