Silver price is under pressure from the rising Treasury yields and US dollar. On Thursday, the benchmark 10-year Treasury yields are at 1.58 after hitting an intraday low of 1.55 in the previous session. The 5 and 30-year yields have risen by 0.59% and 0.18%.
Notably, US bond yields usually offer support to the greenback. At the time of writing, the dollar index was up by 0.04% at 90.08. In the previous session, it was at a four-month low of 89.53.
Silver price is also reacting to the recent remarks by Fed officials on the US monetary policy. On Wednesday, Randal Quarles, the Fed Vice Chairman indicated that the central bank needs to start tapering talks in the coming months if the economy continues with its current pace of recovery. Such a move would be a bearish catalyst for silver price as it would boost the greenback.
Silver price technical outlook
After reaching an intraday high of 28.22 in the previous session, silver price has dropped to its current 27.59. Notably, it is finding support at 27.50. On a two-hour chart, the precious metal is trading below the 25 and 50-day exponential moving averages.
Based on these indicators, silver price is likely to record further losses. I expect it to continue finding support at 27.50. If the bears manage to push it past that level, the next target will be at 27.20. On the flip side, there may be enough buyers to boost the prices to 27.80 and further up to Tuesday’s 28.22.
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