Silver price has been range-bound for close to a week as US lawmakers from the two major political divides remain at odds over the approval of Biden’s infrastructure proposal. As an industrial metal, silver is set to have its demand rise in the implementation of US infrastructure projects such as the installation of solar panels.
However, negotiations between the Republicans and Democrats in the Senate have stalled even after the White House reduced the proposal funding from $2.25 trillion to $1.7 trillion. The aide to West Virginia’s Sen. Shelley Moore, through the Associated Press, has indicated that the divide between the two parties is wider than it was at the beginning of the negotiations.
At the same time, silver price is finding support in the declining Treasury yields. The benchmark 10-year US bond yields are hovering around 1.60. It has been on a downtrend since last week when it rallied to 1.69. The 5-year bond yields are also down by 0.05% while the 30-year yields are up by 0.10%.
Silver Price Technical Outlook
Silver price has been trading sideways for close to a week now. At the time of writing, the precious metal was down by 0.66% at 27.58. On a three-hour chart, it is trading below the 25 and 50-day EMAs.
I expect silver price to remain range-bound between 27.30 and 28.00. In between these lower and upper borders, it is likely to find resistance and support at 27.90 and 27.50 respectively. However, a move past the horizontal channel’s borders will invalidate this thesis.