Silver price remains range-bound as the US bond yields rebound. The Treasury yields, which usually offer support to the US dollar, usually has an inverse correlation with precious metals. At the time of writing, the benchmark 10-year yields were up by 0.11% at 1.53. After consolidating for the better part of the past week, the Treasury yields surged on Friday from 1.47. Further rallying of the yields will exert pressure on the non-yielding precious metal.
In addition to being a precious metal, silver is also an industrial metal. In the new week, silver price will further be reacting to manufacturing PMI numbers from various countries. China will lead the pack by having its manufacturing PMI released early on Wednesday.
As a top consumer of industrial metals, investors will be keen on whether the Middle Kingdom will record a higher figure than the forecasted 50.7. While the estimate is lower than the previous reading of 51.0, a figure above 50 still denotes expansion of its manufacturing sector. Other countries such as Germany, UK, and US will have their manufacturing PMI released on Thursday.
Silver price technical outlook
Silver price ended the week on a bearish consolidation. It ended Friday’s session at 26.09and is down by 0.28% at 26.01 on early Monday. Since the beginning of the past week, it has largely been trading within the range of 25.70 and 26.12. On Friday, the bulls attempted to push for a breakout by hitting an intraday of 26.30 before pulling back. On a four-hour chart, it remains within that range. Notably, it is trading along the 25-day EMA and below the 50-day EMA.
In the ensuing sessions, I expect silver price to breakout to the upside as the bulls target 26.50. Past that level, the bulls will be eyeing 27.00. On the flip side, it may remain within its current range as the bears target the lower support level of 25.50.