Strength in dollar index and rising bond yield pushed bullion prices lower however silver prices found support from better than expected global economic data.
Silver is trading relatively stronger than gold as economic optimism has increased in past three months and bull run in other industrial metals such as copper and nickel is supporting silver prices too.
Global economic data was supportive for industrial metals and pushed silver prices higher. US Jan new home sales rose +4.3% to 923,000, stronger than expectations of 856,000. Also, German Q4 GDP was revised upward to +0.3% q/q and -2.7% y/y from the previously-reported +0.1% q/q and -2.9% y/y.
However, precious metals are under pressure due to rising global bond yields. The 10-year T-note soared to a 1-year high Wednesday of 1.434%.
Also, the 10-year UK gilt yield rose to an 11-month high Wednesday of 0.804%, and the 10-year German bund yield climbed to an 8-1/2 month high of -0.274%. The Japan 10-year JGB bond yield rose to a 2-1/4 year high Wednesday of 0.127%.
Bullion prices are likely to find additional support from easing central bank’s monetary policy for longer term. Fed Chair Powell said there's a lot of slack in the labor market, and there's "a long way to go to maximum employment." Additionally, Fed Governor Brainard said, "the economy remains far from the Fed's goals in terms of both employment and inflation, and it will take some time to achieve substantial further progress."
Silver prices are likely to find support near 50 days EMA at $26.64 and 100 days EMA at $26.053 while key resistance levels are seen around $28.48 and $29.11