Silver is struggling to hold above $25.00 with even weakness in the dollar this morning. The weak dollar and weak metals are usually not good for silver bulls. The Fed is on the watch for inflation as they are data-dependent in their forward guidance. The most recent dialog from the Fed suggests that inflation concerns are, at least for now, pushed to later part of 2021. The primary focus now is how to quickly ignite the economy as governments are ramping up covid-19 vaccine deadlines. There is of course a concern of variant strains of Covid-19, but faster vaccination initiatives would reduce the overall concern. The faster the vaccination schedules, the better for silver in my view.
From a technical perspective, silver needs to continue to hold above $25.00 to come out of this “ flag” like chart formation that could spell a “wash” to $24.00 or lower if silver fails to hold above $25.00. The upside target could be above $25.50 near terms and a break above $26.00 would probably signal near terms lows are in.