Silver price is up for the first time this week as sentiment improves. The metal is up by 0.35% and is trading at $23.35, which is slightly higher than this week’s low of $22.95. Other metals are mixed, with the price of gold rising by 0.25% while copper, nickel, and palladium are down by 0.13%, 0.18%, and 0.35%, respectively.
Silver is mostly rising in part because of the overall sentiment in the financial market after the strong rally in stocks. Just yesterday, US equities rose to an all-time high and today, European indices like the DAX and FTSE 100 have also risen.
This rally is because investors are hopeful that Covid vaccinations will start soon and lead to more business activity. Also, with transition going on in the United States, there are hopes that the world economy will bounce back in the coming year.
Silver price tends to be affected by trends in the global economy because of its dual-role as a store of value and an industrial metal. Indeed, data released this week showed that the manufacturing sector in Europe and the United States continued to do well.
The price is also rising, partly because of the weak performance in the crypto industry. While Bitcoin has added more than 720 points, other digital currencies are struggling, with Ethereum, Bitcoin Cash, and EOS falling by more than 1%. In the past few days, its weak performance was attributed to investors shifting their funds to the better-performing crypto.
Silver price technical outlook
On the daily chart, we see that silver price has been on a steep downward trend since August when it reached a high of $29.73. Today, it is trading at $23.35, which is slightly above the 38.2% Fibonacci retracement level. The price has also moved below the lower support of Andrews pitchfork and the 25-day exponential moving average.
Therefore, at this point, I suspect that the path of least resistance is lower, with the next main support being at September low of $21.63. On the flip side, a move above the psychological level of $25 will mean that there are still more buyers in the market.
Silver technical outlook