Silver Price Forecast: Facing Downward Pressure Under $24.80 – Time to Sell?

Silver‘s market dynamics have shown vulnerability, with the commodity’s price at $24.55, reflecting a cautious stance from investors.

Below the pivot point of $24.82, silver is facing downward pressure, emphasized by support levels at $24.22, $23.66, and $23.24. Resistance is more distant, situated at $25.32, $25.76, and $26.15.

Technical Indicators Signal Bearish Trend:

The technical landscape suggests a bearish outlook with the Relative Strength Index (RSI) at 31 indicating potential overselling.

However, the presence of a bearish engulfing candle and a breach below the upward channel at $24.85 point to possible further declines. The 50-Day EMA at $25.02 corroborates this downtrend.

Impact of Recent U.S. Economic Data:

Unemployment Claims remained stable at 210,000, suggesting labour market resilience.
Philly Fed Manufacturing Index turned positive at 3.2 against an expected -2.6, hinting at manufacturing sector health.

Current Account Deficit was reported at -$195 billion, slightly improving from -$196 billion, but underscoring ongoing trade imbalances.

Flash PMIs for manufacturing and services outperformed forecasts, with readings of 52.5 and 51.7 respectively, indicating economic robustness.

Existing Home Sales surged to 4.38 million units, surpassing expectations and suggesting a rebound in the housing market.

CB Leading Index showed a modest increase of 0.1%, pointing to cautious economic optimism.

Fed Chair Powell’s Upcoming Remarks:

All eyes are on Fed Chair Jerome Powell’s scheduled speech at the “Fed Listens” event. His comments could provide crucial insights into the Fed’s future monetary policy direction, significantly impacting investor sentiment towards precious metals, including silver.

Conclusion: Navigating Silver’s Bearish Outlook

Silver’s current bearish sentiment below $24.82 could persist in the short term. The broader economic indicators, notably the positive PMIs and resilient housing market data, have bolstered the U.S. dollar, putting pressure on silver.

However, the upcoming remarks from Fed Chair Powell could introduce new dynamics, potentially swaying the precious metal’s price trajectory.

Investors are advised to closely monitor these developments, as they could either exacerbate the bearish trend or provide a foundation for a bullish reversal.