Silver price is on a corrective rebound after being on a decline for the better part of the past week. In the new week, focus will be on manufacturing PMIs as a means of evaluating the metal’s industrial demand. In particular, investors will be eyeing China’s manufacturing PMI numbers scheduled for release on Tuesday.
At the same time, the US dollar and Treasury yields are bound to impact the metal’s price movements. The benchmark 10-year yields are back up above 1.50. The rising yields will support the greenback while exerting pressure on precious metals.
Silver price has begun the week on a rebound after a week-long downtrend. On Friday, the bears’ attempt to push it below the crucial support zone of 23.00 was unsuccessful. However, it ended up in the oversold territory with an RSI of 23.
On Monday morning, the corrective rebound has had it bounced off the aforementioned support level even as it remains under pressure. At the time of writing, silver price was up by 1.08% at 23.42. On a four-hour chart, it is still below the 25 and 50-day exponential moving averages. This is an indication that the precious metal may remain under bears’ control in the short term.
For as long as it remains below the psychological level of 24.00, it is a bears’ market. In the near term, I expect the precious market to find resistance along the 25-day EMA at 23.68. Subsequently, it may trade within a horizontal channel with 23.00 and 23.68 as the lower and upper levels respectively.
Past the aforementioned resistance level, the bulls will be eyeing the crucial zone of 24.00. On the flip side, a move below Friday’s low of 22.94 will likely place the support at 22.35.
This post was last modified on %s = human-readable time difference 06:38