Silver price has remained within a horizontal channel as the Christmas week trade takes shape. The expected decline in volume will likely have the precious metal remain within that pattern in the ensuing sessions.
At the same time, the blow to the Build Back Better Act and improving risk appetite will likely boost the commodity as the US dollar declines. However, from a broader perspective, the greenback is still strong. In the past week, hints at interest rate hikes in the coming year pushed the currency close to a 16-month high at 96.91.
Silver price prediction
Silver price is hovering around 22.25 after extending last week’s low on Monday. Late last week, the precious metal had rebounded to a two-and-a-half-week high at 22.68.
At the time of writing, it was down by 0.02% at 22.25. On a four-hour chart, it is trading slightly below the 25 and 50-day exponential moving averages. However, it is still below the long-term 200-day EMA.
I hold a rather neutral bias for silver price. As such, I expect the range between the support level of 22.05 and resistance zone of 22.60 to remain a crucial one for the precious metal in the ensuing sessions. Above the horizontal channel’s upper border, it may surge to along the 200-day EMA at 23.00 before pulling back to the aforementioned range. On the flip side, a move below the lower border will likely place the support level at 21.80.