Silver jumps as precious metals benefit from USD weakening
A lot is going on the commodity market recently, with moves being primarily driven by US dollar and US yields. US dollar strengthening and pick-up in US Treasury yields have led to a rather poor first half of the week for precious metals, with GOLD dropping below $1,900 mark and SILVER pulling back to a key medium-term support zone in the $22.40 area. However, a reversal in the precious metals market can be spotted today. While US yields remain at elevated levels, USD has given back part of the gains and it is supporting precious metals. SILVER is top performer with an over-2% gain at press time while GOLD and PLATINUM add 0.3% and 0.7%, respectively.
There is no clear news behind SILVER outperformance today. However, strong gains on those market began around 2:30 am BST what suggests that it could have been driven by a pick-up in demand from Asian traders, as was the case with ZINC rally yesterday.
Taking a look at SILVER chart at D1 interval, we can see that price has recently pulled back to and tested the $22.40 support zone. However, bulls managed to defend this zone and a recovery move began. A near-term level to watch can be found in the $23.40-23.50 area, where the previous local high as well as 50- and 200-session moving averages can be found.
Source: xStation5
