Silver corrects in Asia, back in the green
Silver was on the back foot and ended the New York day down near 0.5% after travelling from a high of $27.88 to a low of $27.23, closing Wall Street near $27.33.
In recent trade, however, the white metal is performing better.
At the time of writing, silver is trading at $27.35 and up 0.15% on the day so far.
The precious metal has been lagging behind its sister metal, gold, and the gold to silver ratio ended up higher by over 0.7%.
Meanwhile, there is close attention being paid to the commodity sector.
Commodity prices are expected to run higher as the global economy reopens and the consumer, flush with stimulus and savings, brings demand roaring back to life. Meanwhile, there was plenty of bullishness elsewhere within the industrial metal complex.
Copper and aluminium touched a record high as booming demand is colliding with a tight supply of basic materials, helping stoke fears of inflation.
Silver technical analysis
Meanwhile, from a technical outlook, the price is likely giving back ground due to post-NFP profit-taking and while further bleeding is highly probable, there is a significant layer of daily support just below the 27 handle.
The technical conditions are still bullish according to MACD and the separation of the 4-hour 10 and 20 EMAs.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
