Silver is trading flat on the session so fra having travelled within a tight range between $26.06 and $26.12.

Overnight, the greenback was a little firmer in a bullish correction and silver was down on the day, ending the New York session lower by some 0.37% to $26.10.

The white metal in XAG/USD lost its footing from a high of $26.47.

The gold to silver ratio was down by 0.22% with silver picking up some of the flack left behind in gold prices falling. 

Meanwhile, the greenback was correcting from a nine-week low on Thursday following a dovish US Federal Reserve the prior day and from the massive spending plan announcements from the White House that has set the scene for the global reflation trade.

The US President Joe Biden’s announcements the prior day were used to push for another $1.8 trillion in spending and also risked expanding the US budget and trade deficits. This is expected to weigh on the US dollar for the foreseeable future. 

Silver technical analysis

Technically, the price of silver is trapped between support and resistance on the 40hour time frame in a sideways chop between 26.64 and 25.71.

A break of the resistance will open prospects of a test to 26.91 ahead of 27.24 as being the -272% and the -61.8% Fibonacci of the latest daily correction’s range.

Meanwhile, to the downside, the bears will be looking for a run back to the prior highs as being 25.61 on the daily chart which guards the 25.43 level as being the 61.8% Fibo of the 13th April bullish trend. 

Leave a Reply

Your email address will not be published. Required fields are marked *