Silver has been in correction mode on Monday and is moving away from the local bottom, with the commodity trading mostly at $23.50/oz. In terms of technical analysis, the price action could hover around $23.50 in line with the corrective rebound. Further, silver would need to consolidate around this mark in order to reach the new target of $23.90.
In our opinion, the corrective rebound will most likely consist of several steps.
The fundamental background for today’s trading looks low-key with positive sentiment, while pandemic fears have receded and investors are ready to buy into assets that have fallen in price.
Silver will gain long-term fundamental momentum when industrial manufacturing data in China and the US record an uptick. That would send a signal to the market that industrial demand for raw materials is on the rise.