Silver Price News: Silver Sees Solid Support Zone Above $25

Silver began the new week trying to rebound, after the correction seen on Friday. 

The price of futures related to the precious metal retraced from the 12-month high of $26.2 to around $25.5. Silver followed the decline of gold, which was mostly linked to a moderate rebound of the greenback and Treasury yields.

However, this quick bearish movement should be analysed in the context of the current scenario, in which many investors decided to take a profit, temporarily reducing their long exposure to the precious metal after an astonishing performance of almost +30% in less than six weeks.

From a technical point of view, silver has created a solid support zone at $25.2 – $25.3. If the price manages to hold above this level, we could see new recoveries, with an easy target of $26- $26.2, last week’s top. Conversely, if the price continues to decline, the next support zones are placed at $24.5 and $24.75.

However, it is important to note that investors are still carefully watching the Federal Reserve. The dollar rebounded after Fed member Christopher Waller said that recent data shows the US central bank has not yet made enough progress on inflation, and called for more interest rate hikes.

While Waller admitted that the Silicon Valley Bank default will impact credit conditions for the whole US system, he also said that the liquidity action put in place after the SVB case has worked well. His hawkish speech boosted the dollar and temporarily curbed the precious metals sector rally.

Carlo Alberto De Casa is an external Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. His precious metals market commentary has featured in the likes of Forbes, Reuters, CNBC, and Nasdaq.

With a credential background in Economic Finance and International Exchange (MA), his critical analysis of gold and silver markets’ performance is frequently quoted by leading publications, week on week.

This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.