- Silver wavers around 13-day low following a failure to rebound.
- S&P 500 Futures seem to consolidate recent losses amid hopes of further stimulus.
- Geopolitics, trade and covid fears weigh on risks but a light calendar probes the bears.
- US GDP will be the key data to watch, risk news keeps the driver’s seat.
Silver prices seesaw near $25.00 amid Thursday’s Asian trading session. The white metal dropped to the lowest since March 08 the previous day but ended the day’s trading without major moves and a trend-reversal suggesting candlestick.
While looking for catalysts, the US dollar strength and fears of economic recovery seem to have garnered major attention among the market players. However, the white metal’s risk-safety status, depending upon gold’s moves, likely have stopped the quote’s south-run.
Though, the recent headlines from Reuters suggesting further hardships for Chinese firms listed on the American exchanges and North Korea’s missile testing offer fresh challenges to the sentiment.
On the contrary, hopes of further stimulus from the US administration and extra spending on Chinese products, as backed by the Bloomberg analysis, seem to favor the S&P 500 Futures to snap a two-day losing streak by flashing 0.18% intraday gains by the press time. Furthermore, recently upbeat comments from Chicago Fed President Charles Evans also favored the risk-on mood.
Amid these plays, the US 10-year Treasury yields stop the previous three-day downtrend above 1.60% whereas the US dollar index (DXY) stays firm near the four-month top surrounding 92.60.
Moving on, a light calendar in Asia keeps silver traders search for fresh clues but today’s US GDP and comments by multiple policymakers from Europe and the US can entertain traders afterward.
Read: The February Grab-Bag Preview: Personal Income, Spending, Core PCE Prices and GDP
Technical analysis
Wednesday’s gravestone Doji candlestick on the daily chart suggests corrective pullback towards a 100-day SMA level of $25.65. Though, any failure to do so can eye two-month-old support line and 200-day SMA, respectively around $24.90 and $24.70.
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