Silver craters to start the new year
03 January 2022
Both gold and silver plunged sharply in the first trading session of 2022, with gold dropping more than 1% and silver falling 2.5% ahead of the US session, trading near 22.70 USD.
It looks like the short-term recovery during the holiday period could be over as the medium-term trend still seems bearish.
Later today, the US Markit manufacturing PMI for December is due, along with construction spending data for November. Both numbers will unlikely move the markets.
The recent uptrend failed at the 50-day moving average (the purple line), currently near 23.40 USD, and sharp selling followed. The price dropped below the strong support of 23 USD, and the short-term downtrend appears valid as long as it trades below.
The next target for bears could be in the 22.20 USD region, while the most significant support is in the 21.50 USD area.
Alternatively, if sentiment improves during the US session, silver must climb above 23 USD to cancel the immediate bearish trend.