Silver Price Targets $26 After Strong US Retail Sales
- Silver is trading higher at $25.74 as the bulls target $26.
- The US dollar is at 91.60, close to its one-month low of 91.60.
- The decline in US bond yields is also offering support to silver price.
Silver price is trading higher amid a weakening US dollar. The precious metal, which is also finding support from the declining US bond yields, is up by 1.43% at $25.74.
Weakening US dollar
Despite the better-than-expected jobless claims and retail sales data, the greenback is still relatively weak. The dollar index, which tracks the value of the US dollar against a basket of other currencies, is down by 0.04% at 91.60. This is close to 91.53; its lowest level since mid-March.
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According to the Census Bureau, March retail sales improved by 9.8% compared to the forecasted 5.9%. The shopping spree, which is the highest since May 2020 is an indication of how US shoppers used their stimulus checks. Based on the reaction of the dollar to these numbers, investors are of the opinion that the impact of the $1.9 trillion stimulus package will soon fade away. At the same time, initial jobless claims dropped from the prior week’s 769,000 to 576,000. Analysts had predicted a reading of 700,000.
Silver price is also finding support in the declining US bond yields. The benchmark 10-year treasury yield is at 1.56. This is its lowest level since 12th March. The decline, which has continued since the end of March has been a bullish catalyst for the precious metal.
Silver Price Technical Outlook
Silver price is trading higher on Thursday’s session as it finds support in a weakening US dollar. The precious metal is up by 1.43% at 25.74. This is its highest level since 23rd March. On a two-hour chart, it is trading above the 25 and 50-day exponential moving averages. Besides, it is trading outside of the ascending channel on the upside.
Notably, $26 remains a key level in the metal’s path to recovery. Since the beginning of April, silver price has been rebounding. While it has managed to break out past the resistance level of 25.50, it will need to reach and surpass the $26 mark to prove its recovery. As such, investors looking to trade silver are keen on whether the bulls in the market can gather enough momentum to push it to that level.
At the moment, the resistance level is at 25.83. It is likely that silver price will waver between 25.16 and 25.83 in the near term before moving further up. Below that support level, the next target will be 24.61.