Silver price is see-sawing around $24.50 as the market reacts to the surge in US treasury yields. On Tuesday, the precious metal was trading lower by 0.54% at 24.51.
After dropping below 1.60, the 10-year US bond yields are back to the one-year high hit in mid-March at 1.75. This has pushed the greenback to its highest level since November 2020 at 93.04. A strengthening US dollar tends to create an unfavorable environment for silver price as it makes it more expensive for buyers with other currencies.
On the industrial front, silver price is finding support from the proposed $3 trillion US spending package. Based on the metal’s use in renewable energy and infrastructure projects, the approval of this proposal is expected to increase its demand.
Silver Price Technical Outlook
Silver price has been on a downtrend for close to two weeks. Since mid-March, it has declined by about 8%. On a 4-hour chart, it is trading below the 25 and 50-day exponential moving averages. Besides, at its current price of $24.63, it has been finding support at $24.50 for the second consecutive session. The price consolidation is likely to continue in today’s session.
If silver price breakout of that support-turn-resistance level, the next level to watch out for will be $24. That will be its lowest level since mid-January. However, the bulls may manage to push the price higher to $25 in the near-term. A move past that point will see the bulls test $26.