- Silver eases inside a 20-pip trading range following the previous day’s heavy rise.
- S&P 500 Futures print mild losses after Wall Streeet’s downbeat close.
- Strong RSI, sustained trading beyond the key SMA confluence favor bulls.
Silver attacks the lower end of the immediate trading range below $27.00, around $26.85 by the press time of Tuesday’s Asian session. The white metal jumped the most since early February the previous day before recently easing on mildly offered S&P 500 Futures.
Risk-on mood weighed on the US dollar and propelled the commodity prices to offer a strong May-start to silver. Behind the moves were chatters that India’s covid conditions have recently stopped from deteriorating in some regions as well as upbeat comments from the Federal Reserve (Fed) Chairman Jerome Powell and New York Fed President John Williams.
While Fed’s Powell said, “economy is not out of woods yet but now making real progress,” Williams mentioned that the economy is on a very good trajectory but we still have a long ways to go. During the weekend, Dallas Fed President Robert Kaplan became the first US banker to back the discussion over tapering.
It should be noted that the US ISM Manufacturing PMI could also be spotted for the risk-on mood despite easing from 64.7 to 60.7. The reason is the components that together rallied for the first time since 2014.
Recently, the New York Times (NYT) came out with the headlines suggesting the US Food and Drug Administration’s (FDA) authorization to the Pfizer-BioNTech vaccine for 12-15 years old by early next week, which in turn should have backed the market optimists.
However, a lack of major data and off in China, as well as Japan, may have tested the bulls ahead of the key Aussie data/events. As a result, S&P 500 Futures drop 0.18% following a mixed performance of Wall Street.
Moving on, covid updates and US Factory Orders for March may direct near-term silver moves but major attention will be given to the US Treasury yields that dropped the previous day.
Silver buyers may ignore the latest sluggish moves unless witnessing a clear break of the $25.60 horizontal line, not to mention a confluence of 21-day and 50-day SMA near $25.80-85. Meanwhile, a five-week-old rising trend line near $27.30 can lure the bulls on successful upside past-$27.00.