Silver price remains on a downtrend as it seesaws around $24. On Wednesday, the metal found some support from the easing of the US dollar and upbeat Chinese manufacturing PMI. It is up by 0.3% at $24.05.
Chinese Manufacturing PMI
Silver price traded higher on Wednesday’s session as the market reacted to the upbeat Chinese PMI numbers. According to the country’s National Bureau of Statistics, March manufacturing PMI beat the estimates of 51.0 at 51.9. This is the first time that the data is coming in better-than-expected since November 2020.
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The Chinese lockdown that defined this year’s Lunar New Year holidays explains the expansion of its factory activity in March. Unlike the previous years, factory workers were not able to travel upcountry to celebrate with their loved ones. As such, Chinese factors were able to get back to the pre-holiday levels within a relatively short span.
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Strengthening US dollar
While it is still on a downtrend, silver price is finding support from the easing of US bond yields. On Tuesday’s session, the benchmark 10-year treasury yields rose to 1.77. This is its highest level since January 2020. However, it has since eased to the current 1.73.
The treasury yields, which have an inverse relationship with bond price, has been offering support to the greenback. With the easing of the yields on Wednesday, the dollar index was down by 0.03% at $93.27. Nonetheless, it remains close to the record-high set on Tuesday at $93.44.
Silver Price Technical Outlook
On a one-hour chart, silver price remains below the 50 and 200-day exponential moving averages. Those looking to trade silver may have noted that it has been below the short and long-term EMAs for over a week now. Until the price moves past the 200-day EMA, the bearish outlook will remain.
On Wednesday’s session, silver price is up by 0.3% at $24.05. On the lower side, the support level is at 23.75. A move past this point to the downside will have the bears test the $22 mark. This would be the metal’s lowest price since December 2020.
Besides, the precious metal is finding resistance at around 24.20. If the bulls manage to break the resistance, the next target will be the psychological level of $25.
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