- Silver price dropped by 0.57% to trade at $23.44.
- Just like Gold, Silver’s safe haven appeal has lessened as investors shift to the booming crypto market.
- The market is reacting to the divergent trend of the manufacturing PMI numbers.
Silver price continued its downward trend to trade at ~$23.44. The figure represents a decline of 0.57%. Just like gold, silver’s safe haven appeal has reduced as investors look to profit from the steadily rising cryptocurrency market. When traded against Bitcoin, XAUBTC is still on its steep dip at the current $0.09. Silver price movement comes a day after the mixed PMI data from Europe and the U.S.
Investors shift their resources from the precious metals to the crypto market
The safe haven appeal for silver has risen as investors shift their focus to cryptocurrencies. On Tuesday, crypto were largely in the green. Ethereum rose by 3.82% to trade at $615.48. At the same time, Ripple was trading at $0.68, which represents a change of +32.37%. Bitcoin also rose by 0.31% to trade at $18,633.8.
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Markit releases mixed manufacturing PMI numbers
The current drop in silver price comes a day after IHS Markit released PMI data. The numbers exhibited divergent trends. In the current month, the French Markit Composite PMI dropped from the previous 47.5 to 39.9. The figure was lower than the forecasted 50.1.
However, despite the enacted lockdown measures, some of the released data was higher than expected. In the Eurozone, this month’s manufacturing PMI stood at 53.6. The number was lower than last month’s 54.8 but higher than the forecasted 53.1. Similarly, the German manufacturing PMI was at 57.9. The figure is higher than the expected 56.5 but still lower than the previous 58.2.
The mixed manufacturing PMI numbers have also been observed in other developed economies. For instance, UK’s manufacturing PMI was 55.2. Analysts had forecasted that figure will remain at the previous reading of 53.3. In the US, the PMI rose to 56.7 against the forecasted 53.0.
The manufacturing PMI figures impact the prices of this precious metal; an aspect that is of interest if you are looking to buy silver. In addition to its safe haven appeal, silver is an industrial metal used in the global manufacturing sector. Some of its uses include the production of mirrors and kitchenware.
Silver price technical outlook
Looking at the 6-month chart, the precious metal is currently trading below the 50-day and 100-day exponential moving averages. However, the outlook for the silver price movement is rather neutral. In this scenario, silver price could move in either direction.
On the one hand, the precious metal is likely to trade further down as it finds support around $23.15. This price level has been its lowest point in November. If it heads upwards, its resistance will likely be past the $24 psychological price level and towards $24.54; which was its highest point on last week’s Friday.