- Silver snaps two-day winning streak after visiting the highest levels since last Wednesday.
- Trading sentiment keeps the latest cautious optimism ahead of the key events.
Silver prices wobble in a choppy range between $24.05 and $24.10 during the initial Asian trading on Tuesday. The white metal earlier rose to a four-day top before stepping back from $24.16.
US dollar pullback and October month’s upbeat activity numbers from the key global economies, like China, Europe and the US, have favored the commodity on Monday. The US dollar index (DXY) marked its first negative daily closing the previous day after taking a U-turn from a five-week high.
Not only the PMIs but increasing odds of a soft Brexit and a blue wave in the US elections, noted by the Democratic victory in both the houses, also lifted the market mood.
On the contrary, the coronavirus (COVID-19) woes join the delay in the American stimulus and fears of a double-dip recession in the UK to challenge the optimists. Further, US President Donald Trump is known for surprise and hence traders remain cautious ahead of the historical elections.
Amid all these plays, S&P 500 Futures keep Monday’s bounce while printing 0.22% intraday gains.
With a light calendar in Asia, except for the RBA, silver traders will await developments on the US voting and the latest polls for fresh impetus. Although the Democratic victory is widely anticipated and likely favorable to the market’s risk tone, hopes of Trump’s re-election can’t be ruled out, which in turn will offer a volatile day ahead.
Technical analysis
50-day EMA and a falling trend line from September 01 guards the metal’s immediate upside around $24.40 whereas sellers are likely to wait for a daily closing below the 100-day EMA level of $23.33 for fresh entries.
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