The silver price has done well in the past trading sessions as fears of high interest rates eased. The metal’s price rose to $28, which is slightly above this week’s low of $27.17. Other precious metals like gold and platinum have also bounced back.
Silver news: Silver has is rising as investors remain optimistic that the Federal Reserve will not hike interest rates even as the macro conditions improves. Recent data showed that the country’s inflation rose above the Fed’s target of 2.0% while the producer price index rose by more than 6%.
Data also revealed that the country’s home prices surged to the highest level since 2005. However, despite the improved market conditions, the Fed insisted that it will continue supporting the economy through low interest rates and quantitative easing. Also, this is despite the fact that other central banks like the Bank of Canada and the Reserve Bank of New Zealand have started being hawkish. Silver prices are also rising because of the ongoing deliberations on stimulus in the United States.
Silver price forecast
The four-hour chart shows that the silver price has been in a strong upward trend in the past few weeks. The metal has formed an ascending channel that is shown in black. It is also beimg supported by the 25-day and 15-day exponential moving averages (EMA). Also, it seems like it is forming a cup and handle pattern while the Relative Strength Index (RSI) has moved to 60.
Therefore, the path of least resistance for the metal is upwards. The pair will likely keep rising as bulls target the important resistance at$28.73. However, a drop below the support at $27.20 will invalidate this thesis.