Silver price has bounced off Friday’s low even as it continues to trade below the resistance level of $23.00. On the one hand, higher Treasury yields are exerting pressure on the precious metal. At the time of writing, the benchmark 10-year US bond yields were up by 4.81% at 1.78%; a significant rise from Friday’s low of 1.70%.
At the same time, silver price is finding support from the positive Chinese data. The Middle Kingdom is the largest consumer of silver and other industrial metals. To begin with, the country’s GDP rose by 1.6% in Q4’21 compared to the predicted 1.1% and prior quarter’s 0.2%. Besides, industrial production rose by 4.3% in December YoY, which is higher that the previous 3.8% and expected 3.6%.
Silver price prediction
Silver price is hovering below the psychologically crucial level of 23.00 in early Monday trading. On Friday, it hit a two-week high of 23.30 before dropping below the aforementioned level. At the time of writing, it was down by 0.07% at 22.94.
On a four-hour chart, silver price is trading slightly above the 25 and 50-day exponential moving averages. It is also above the long-term 200-day EMA. Based on both the fundamentals and technicals, the precious metal will likely record further gains in the short term.
I expect the metal to continue finding support along the 50-day EMA at 22.83. Subsequently, the bulls will have an opportunity to retest Friday’s high of 23.30.
Past that level, the next target will be at the crucial zone of 23.50, which has been evasive since late November. On the flip side, a decline beyond the current support level may have the bears push it to 22.67 or lower at 22.47.