Silver prices remained steady in a multi-day trading range, showing positive traction on Friday. The confluence support level of $21.65-$21.70 has the potential to push prices higher, indicating prospects for additional gains. However, a convincing break below the $21.00 mark is required to negate the current positive bias.
Investors in the precious metals market have been closely monitoring silver prices, which have been trading in a tight range for several days. The current positive momentum has been driven by increased demand from investors seeking safe-haven assets due to economic uncertainty and geopolitical risks.
The confluence support level of $21.65-$21.70 has played a key role in preventing a significant decline in silver prices. This level represents the intersection of multiple technical indicators, including moving averages and Fibonacci retracements, which indicate potential buying opportunities for investors.
A break above the $21.70 resistance level could see silver prices rise to the next significant resistance level of $22.00. However, a decisive move above this level is necessary for a sustained bullish trend.
On the downside, a break below the $21.00 mark could lead to a significant decline in silver prices. This could be triggered by a stronger US dollar or a sharp sell-off in the equity markets, which would increase demand for cash and force investors to liquidate their silver holdings.
In conclusion, silver prices remain in a tight trading range, with the $21.65-$21.70 confluence support level playing a key role in maintaining the current positive bias. Investors should closely monitor price movements and technical indicators to identify potential trading opportunities.