Silver prices are up today following an increase in the ISM Manufacturing PMI, but the march towards $25 could be laboured as the increase was softer than markets had expected. Economic activity in the US manufacturing sector had a softer-than-expected pace of expansion, growing to 55.4. This was lower than the last number and the consensus figure of 56.0.
Silver price posted a 3.5% increase on the day, but the price increase may find it difficult to push beyond the current resistance at 24.569 as the response to the result remains somewhat muted. This is not entirely surprising as the Non-Farm Payrolls is due to be released tomorrow.
The employment sector in the US has shown a recovery that many analysts feel is not fast enough, given the level of stimulus provided by the US government.
From a metals perspective, demand for gold as a safe-haven asset has cooled. Silver prices benefited from the gold rush of July/August 2020, but further increases in silver price will depend on more remarkable recovery in manufacturing activity. So far, this has not happened.
Technical Outlook for Silver Price
Price is aiming for the 24.569 resistance. This price level has capped any previous attempts to push upwards all week long. Only a break of this level allows the silver price bars to achieve the 25.000 psychological resistance, which is a pitstop on the way to the 26.325 level.
On the flip side, a breakdown of the 23.164 price level allows 22.387 to come into the picture as the next possible target. 20.734 and 20.062 are other targets to the south.
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XAGUSD Chart (Daily)
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