Silver Strengths as Dollar Weakens Amid Central Bank Comments

Silver has performed relatively better than gold since its recent rebound began.

The asset's relative strength is worth watching as it heads into a week with central bank speakers, including ECB President Christine Lagarde and Bank of Canada Governor Tiff Macklem, on the calendar. If the dollar weakens, silver could be the one with momentum. The Chicago Fed National Activity Index will hit at 12:30 GMT, followed by comments from various central bank officials.

Austan Goolsbee, President of the Chicago Fed, is expected to speak later in the day and his tone will matter more than the activity index itself. If he signals that there will be fewer interest rate hikes, it could lead to a further weakening of the dollar and potentially give silver another push towards $67.34.

To break through this level, buyers must first get past the minor top at $67.34 and then deal with $67.79 before reaching the lower high at $68.33. Clearing this level would turn the main trend higher. However, if prices fall below $65.32, the rebound will be in question, and sellers could potentially target the 50-day moving average of $63.14 or even lower.