The silver price is bouncing back today after it dropped by more than 10% yesterday. It is also in its first day in the green since Tuesday last week. It is trading at $25.40, which is slightly above yesterday’s low of $24.35. Other metals like gold and copper are also rising.
What’s happening: Silver price is rising ahead of a major speech by Joe Biden who will unveil his stimulus plan on Thursday. While no details have been leaked, economists expect that the incoming president will unveil a $3 trillion package that will include money to individuals and state and local governments.
Also, more funds could go towards clean energy infrastructure projects, which could be positive for silver prices. Also, a bigger stimulus could be negative for the dollar, which is also positive for the metal. However, if the stimulus is less than expected, the price could drop in the near term.
Silver price technical outlook
The daily chart shows that the silver price has been wavering in the past few days. It reached a high of $28 last week and then fell to $24.36 yesterday. This price is slightly below the vital support level at $26 and slightly above the 50-day and 25-day exponential moving averages.
Therefore, in the near term, it seems like the price will drop to $24 as bears target the next support at $21. However, a move above $26 will invalidate the bearish thesis.
Silver technical chart
View original article here Source