Silver price is back to its prior consolidative range of about $23.50 after dropping to the support level of $23.00 on Thursday. Notably, the strengthening US dollar has weighed on precious metals. After last Friday’s surge, which was triggered by the positive nonfarm jobs data, the dollar index has been trading steadily above the crucial level of 92.50.
Besides, the price is also reacting to the rising Treasury yields. The benchmark 10-year US bond yields are at 1.35 after declining to 1.30 earlier in the week. Rising Treasury yields tend to be a bearish catalyst for precious metals.
Silver price is on a corrective rebound after entering the oversold territory in the previous session. At the time of writing, the precious metal was up by 1.08% at 23.43. On Thursday, the selling pressure pushed it to an intraday low of 23.00 with an RSI of 27.51.
On Monday, it dropped to its lowest level year-to-date at 22.08. Subsequently, it traded sideways around 23.50 for two consecutive sessions before declining further. On a three-hour chart, it is trading below the 25 and 50-day exponential moving averages with an RSI of 45.
I expect silver price to continue finding resistance along the 25-day EMA at 23.46 in the near term. The entry of more buyers into the market may push it to 23.83, along the 50-day EMA, before pulling back to 23.50.
On the lower side, 23.00 is likely to remain a key support level. Further selling pressure may have the bears retesting Monday’s low of 22.08. However, a move above the psychological level of 24.00 will invalidate this thesis.