- Silver stays easy while keeping Wednesday’s recovery moves from $26.40.
- US stimulus hopes, vaccine news and upbeat data favor risks.
- Pre-BOE, NFP mood questions optimism amid a quiet session.
Silver picks up bids to $26.90 during the initial Asian session on Thursday. In doing so, the white metal keeps the previous day’s recovery moves, at a lesser pace, amid a less active trading time. Though, increasing odds of US relief package and welcome developments concerning the coronavirus (COVID-19) vaccine joins upbeat data from the key economies to back the bulls.
US dollar gains do little harm…
Despite the mixed performance of Wall Street benchmarks, global markets stay optimistic, as portrayed by the US 10-year Treasury yields, amid increasing expectations of the $1.9 trillion fiscal stimulus from US President Joe Biden. Not only the Democratic push to oust Republicans from the key proposal but comments favoring the need for an aid package from the Federal Reserve officials and Treasury Secretary Janet Yellen also suggest more money is coming.
As per the latest update, the US house secures enough votes to pass the budget plan, which in turn fast-tracks US President Biden’s $1.9 trillion covid relief package.
It should be noted welcome results of the covid vaccine trials and better than forecast data from the US and Europe add to the market optimism. Furthermore, a recent reduction in the COVID-19 statistics improves the mood as well.
Alternatively, fears of further restrictions on market activity, after the latest frenzy, join the diplomatic tussle between the UK and Europe, as well as amid the US and China, challenge the risks. Also in the same line could be the cautious sentiment ahead of today’s Bank of England (BOE) Quarterly Inflation Report (QIR) and Friday’s key US employment data for January.
Although the aforementioned moves helped the US dollar index (DXY) to refresh two-month high, which generally could have weighed on the commodities, silver stays positive as traders seek solace in bullion after its early-week jump due to the social media platform chatters.
While the Asian session carries a light calendar on Thursday, silver traders may have to keep their eyes on risk catalysts like virus updates, vaccine news and US stimulus developments for fresh impulse.
Technical analysis
Unless trading beyond an ascending trend line support from November 30, at $25.05 now, silver remains bullish.
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