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Silver Price: Here’s Why Silver is in a Holding Pattern Today

silver price

Silver price is little changed today as investors focus on the upcoming investments in clean energy in the United States. The metal is trading at $25.60, which is higher than September’s low of $21.65.

US clean energy investments

The price of silver has been on a strong rally partly because of the recent trend of clean energy investments. This year, Europe announced a major $865 billion financing plan in its bid to increase the recover from the pandemic. Most of these funds will move into clean energy investments, which include solar energy.

Similarly, the price has been rising because of the US politics. During the campaign, Joe Biden pledged that he would allocate more than $2 trillion to boost the country’s clean energy. That will also include huge investments in solar.

Silver is a major component used in the manufacture of solar panels. As such, these investments will boost demand for the metal.

However, silver price is unchanged today because of the US senate. Early indications are that Republicans will continue holding the senate, which will be a major hindrance to Joe’s clean energy agenda.

Elsewhere in precious metals, gold price is up by 0.20% while platinum price is up by 0.25%. Palladium has dropped by more than 0.90%.

Silver price technical outlook

On the daily chart, we see that silver price has been rising since September 24, when it fell to $21.65. It is now trading at $25.60, which is the highest it has been since September 21. It has also moved above the 25-day and 50-day exponential moving averages. Also, it is along the 23.6% Fibonacci retracement level.

Therefore, I suspect that the metal’s price will continue rising as investors aim for the next resistance at $27.00. On the flip side, a move below $24, will invalidate this trend.

Silver technical chart

Silver Price