- Silver price pick-up bids from $28.05 after logging the fifth month of gains.
- Recently upbeat manufacturing data joins mixed market sentiment and US dollar weakness to keep the buyers hopeful.
- Today’s China Caixin PMI, US ISM Manufacturing PMI will be the key.
Silver prices remain on the front foot while taking the bids near $28.20, up 0.40% on a day, amid the early Tuesday’s trading. In doing so, the white metal steps forward to the sixth month of gains even since it bounced off in April.
While the recently sluggish risk-tone sentiment could be challenging the bullion’s immediate moves, broad US dollar weakness and rush for risk-safety keep the metal buyers happy near the highest since early 2013. The US dollar index (DXY) refreshed 28-month low while declining to 91.99, currently around 92.08, on Monday.
Among the other catalysts, the lack of agreement over the much-awaited American relief package to combat the coronavirus (COVID-19) gains major attention. Recently the US Treasury Secretary Steve Mnuchin blamed House Speak Nancy Pelosi and the Democratic Leader of the Senate Chuck Schumer for the deadlock. However, the Trump administration member also raised hopes for any decision as the Republican leader of the Senate Mitch McConnell is trying to have an offer in a week, as per the Fox Business.
Elsewhere, the COVID-19 numbers from Australia and the US have stabilized whereas manufacturing PMIs from China and America raised bars for the bears’ entry.
Amid all these catalysts, S&P 500 Futures drop 0.10% after rising to the record top of 3,524.50 on Monday. Further, the US 10-year treasury yields gain near two basis points to 0.71% while stocks in Asia-Pacific remain downbeat with Australia’s ASX 200 leading the fall by marking over 2.0% loss by the press time.
Looking forward, traders will keep eyes on qualitative risk catalysts while also following China’s Caixin Manufacturing PMI and the RBA decision for immediate moves ahead of the US ISM Manufacturing PMI. Although the scheduled data/events are likely to come in positive and challenge the bullion’s further upside, question marks over the US relief package, virus vaccine and Sino-American tussle could keep the metal’s safe-haven demand on the table.
Technical analysis
Considering the sustained break of $28.00, August 18 high near $28.50 and $29.00 round-figures are on the bulls’ radars ahead of the previous month’s peak near $29.85. Meanwhile, the 21-day SMA level of $27.19 questions the short-term sellers.
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