Silver is currently trading near $25.90 which is moderately up from yesterday’s low of $25.58 however prices are still sharply lower from the recent high of $28.90 registered on May 18.
However, strength in the dollar index is likely to keep precious metals under pressure. The dollar index rallied from the recent low of 89.515 registered on May 25 and is currently holding near 92.060 and moderately up from yesterday lows.
However silver prices are likely to get support from positive economic data which is supportive of industrial metals demand. The May Chicago Fed national activity index rose +0.38 to 0.29, against expectations of +0.70.
Precious metals also found support from dovish St. Louis Fed President Bullard comments. He said that the FOMC "is only now starting to talk about tapering, and it will take some time to get that organized and to get that running."
Additionally, ECB Governing Council member Holzmann said projections for inflation to taper off beyond 2021 suggest there is "no occasion to raise interest rates" for now. In addition, ECB Governing Council member Centeno said, "all the available analysis indicates that the events associated with inflation are temporary," and there is no evidence of "permanent moves" in the inflation rate.
According to the CFTC Commitments of Traders report for the week ended June 15, net long for silver futures jumped 2258 contracts to 52064 for the week. Speculative long position gained 5213 contracts, while shorts increased by 2955 contracts.
Silver prices are likely to find immediate support near $25.35 and $25.11 while immediate resistance is seen around $26.21-$26.76