Silver price has eased at around $21.50 after the close to 5% drop on Wednesday. The precious metal is under pressure as Chinese manufacturing activity records contraction for the first time since February 2020.
Data released earlier on Thursday indicated a manufacturing PMI of 49.6. Analysts had expected a reading similar to the previous one of 50.1. Besides, rising Treasury yields and an overall strong dollar is weighing on the precious metal.
Silver price prediction
Silver price is hovering at 21.50 after plunging to a two-month low of 21.42 on Wednesday. The downwards movement had the precious metal lose by close to 5% in one session.
After hitting September’s high of 24.86 earlier in the month, it has dropped by 13.27%. besides, it is still 28.54% lower than the year’s high of 30.16. At the time of writing, it was up by 0.01% at 21.53.
On a two-hour chart, it is trading below the 25 and 50-day exponential moving averages. Besides, with an RSI of 26, it is in the oversold territory.
In the near term, silver price will likely be subject to a corrective rebound. If that happens, it will rise to find resistance along the 25-day EMA at 22.00. At that resistance zone, it will likely remain below the 50-day EMA at 22.21. On the flip side, a decline below its current support level will have the bears eyeing 21.00.