Silver prices corrected marginally after testing a high of $26.38 on Friday and were now trading near $26.12.
Dollar weakness, along with correction in US bond yields from recent highs, are likely to support precious metals. The dollar index was trading at 91.43 below the four week low, and much lower from its recent high of 93.47 registered on Mar. 31.
The US 10-year Bond yield also continued a negative trend on Monday, trading recently at 1.5571, which was sharply lower from the recent high of 1.7760 on Mar. 30.
Silver prices found additional support on strong Chinese data and better-than-expected US housing data.
US March housing starts rose +19.4% m/m to a 14-3/4 year high of 1.739 million, against expectations of 1.613 million. Also, March building permits rose +2.7% m/m to 1.766 million, stronger than expectations of 1.750 million.
China's Q1 GDP expanded by a record +18.3% y/y (data from 1978), also, China’s March crude processing rose +20% y/y to 14.14 million BPD. China's March industrial production rose +14.1%y/y, the largest increase in 9-3/4 years. In addition, March retail sales rose a record +34.2% y/y (data from 1995), stronger than expectations of +28.0% y/y.
Precious metals are also trading higher following the dovish comments from global central banks. Fed Governor Christopher J. Waller said the U.S. economy is poised to "rip" in the coming months, but still has a long way to go, and there's "no reason to pull the plug on economic support until we're really through this."
According to the CFTC Commitments of Traders report for the week ended Apr. 13, net long for crude oil futures jumped by 4,109 contracts to 36,424 for the week. Speculative long position increased by 2,184 contracts, while shorts dropped by 1,925 contracts.
Silver prices are likely to trade firm while above the key support level of 20 days EMA of $25.54 and 200 days EMA of $24.80.
However, it may face an immediate resistance level around $26.76 and $27.42.