Silver prices appear to have shaken off the disappointing data around manufacturing activity, brought on by the emergence of the delta variant of the coronavirus and delays in reopening many economies.
So far, manufacturing PMI data from the US, Canada and China have disappointed the markets. But with long-term bond yields dropping very hard, the greenback has come under some selling pressure on the day, allowing non-yielding metals a chance at pushing higher.
Silver price is up 0.65% as of writing.
Silver Price Outlook
The daily chart shows silver price testing the upper border of the falling wedge. This border intersects the 25.724 resistance.
A break of this price level, which could come off a bounce on 25.386, completes the breakout of the wedge and opens the pathway towards attaining a measured move that terminates at 27.502. This move needs to take out 26.325, 26.624 and 26.868 for actualization.
On the flip side, rejection at this border leads to a pullback that immediately puts 25.386 under pressure. If that support gives way, 24.569 becomes the automatic target to the south. The demand zone that has 24.000 as the ceiling completes the downside barriers for sellers.
Silver Price (XAG/USD): Daily Chart
Follow Eno on Twitter.