Silver price holds above 100-day EMA as U.S. unemployment data weighs in
The 100-day EMA has acted as a reliable support point
Silver price struggle to break through recent price levels offers a fascinating glimpse into current market dynamics. After hitting a four-week high of $30.96 last week, the precious metal has faced challenges in surpassing this price. As of Thursday, January 23, silver has dropped by 1% during the Asian session, trading around $30.53, a slight reduction from the week's high of $30.56.
Despite the dip, silver remains above a critical support level provided by the 100-day Exponential Moving Average (EMA) at $30.42, suggesting that any further price pullbacks might be limited. The 100-day EMA has acted as a reliable support point in recent times, and its importance cannot be overstated as silver’s price consolidates just above it.
Silver price dynamics (November 2024-January 2025). Source: TradingView.
The broader macroeconomic backdrop adds to silver's price outlook. The market is currently digesting US unemployment claims data, which typically influences broader market sentiment and liquidity. A better-than-expected claims number could translate into positive momentum for silver, as lower unemployment could signal a more robust economy and support investor demand for the metal as a safe haven. Similarly, geopolitical tensions, including comments from President Trump at the World Economic Forum, continue to influence market dynamics. While his tariff threats initially fueled silver's premium, reports that new tariffs may be postponed have reduced some of the upward pressure on the metal.
Silver price projection: RSI signals potential upside
Technically, the Relative Strength Index (RSI) remains firmly above the neutral 50 level, indicating that silver retains potential for further upside. This momentum, despite recent declines, suggests a market that is not yet ready to let go of its bullish sentiment. Traders might find this particularly promising, as a sustained reading above 50 implies the market remains in a favourable position for upward movement.
As silver hovers just above key support levels and RSI signals potential for further price appreciation, its short-term outlook remains somewhat optimistic. Investors should watch for any major shifts in the broader market environment or more concrete signals that may determine if silver can once again challenge its recent highs or face additional resistance.
Silver declined sharply near $30.20, but quickly recovered after finding support at the 100 EMA. Silver overcame an earlier dip in the Asian session, reaching a two-day high.
