Silver price has extended its gains from the previous session after the better-than-expected industrial production numbers from China. Earlier on Thursday, data released by the National Bureau of Statistics of China indicated that industrial production in June rose by 8.3% YoY. The rise is higher than the forecasted 7.8% although it fell short of the previous 8.8%.
At the same time, the Middle Kingdom’s retail sales rose by 12.1% YoY. It beat the estimates of 11.0% but increased at a slower pace than the prior month’s 12.4%. On a quarter-on-quarter basis, the country’s GDP grew by 1.3% in Q2’21 compared to the estimated 1.2%.
China is a leading consumer of industrial metals including silver and copper. As such, bullish figures from its manufacturing sector tend to boost the demand and prices. At the time of writing, copper was up by 1.17% at $4.3175 per pound.
At the same time, the continued decline in US bond yields has boosted silver price. After hitting a one-week high of 1.42 on Wednesday, it has declined to its current 1.31. Notably, low Treasury yields usually act as a bearish catalyst for the US dollar while supporting precious metals like silver.
Silver technical analysis
Silver price is up by 0.23% at 26.30. It has extended its previous gains after better-than-expected Chinese industrial production data. On a two-hour chart, it is above the 25 and 50-day EMA.
If the bulls manage to push the prices past the current resistance level at 26.46, their next target will be at the month’s high of 26.77. On the flip side, a move below the support level at 26.13 will have the bulls eyeing 25.86.
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Silver price chart
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