silver price
silver price

Silver price has been dropping for five days regardless of a strong US dollar. It started the new week with a continuation of losses below the $24.00 critical since 25th February. Certainly, the Russian-Ukraine crisis began on 24th February; thus, these levels solidly supported the precious metal with increased safe havens demand.

Yet, predictions for price hikes keep offsetting its safe-haven charm. Analysts predict a half percentage rise in the Fed’s next meeting in May. Moreover, there are more predictions that the Fed will increase rate hikes during the year.

Alternatively, the US dollar will keep rising, weakening the silver price. Currently, the dollar index is trading at $101.60; on Monday morning, it increases to $101.75, its highest level since March 2020.

Furthermore, the silver price’s performance is due to a drop in demand by the Chinese. Besides being a precious metal, it’s an industrial metal too used in the manufacturing and electrical subindustries. Since China is the largest consumer of industrial metals globally, the ongoing COVID-19 lockdowns have increased demand worries for metals like silver, copper, and iron ore. Copper price fell to $4.47 per pound for six weeks.

Silver price technical forecast

Silver price has extended last week’s losses, trading below the crucial support zone of 24.00 in two months. It is below the 25 and 50-day exponential moving averages on a daily chart. As per the fundamentals and technicals, the precious metal will likely keep tight as the week continues.

Even with the Drop, 24.00 will keep being a significant level to focus on next week. Eventually, the silver price will likely hover around 23.71 as the bulls gather enough momentum to retest this level. Regardless, the further decline may have the precious metal find support at 23.32.

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