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Below are Quote and Outlook on Silver By Mr. Abhishek Bansal, Founder Chairman, Abans Group. 

Silver likely to continue its negative trend

Silver prices are trading in the $25.75-$26.40 range from the last five trading sessions. However precious metals found some support from weakness in the US dollar index and lower bond yields. The gain in silver and gold was limited after hawkish Fed comments.

On the economic data front, the U.S. Jun Dallas Fed manufacturing activity index fell -3.8 to 31.1, weaker than expectations of 32.5. Meanwhile, the German May import price index rose +1.7% m/m and +11.8% y/y, against expectations of +1.3% m/m and +11.4% y/y. The 11.8% y/y gain was the largest in 39 years.

ECB Governing Council member Holzmann said, "There is no room to raise interest rates given weak inflation." Also, ECB Executive Board member Panetta said the ECB must use "unconventional flexibility" to keep borrowing costs low until government spending helps push up inflation. 

Hawkish Fed comments are keeping precious metals prices under pressure. Boston Fed President Rosengren said the Fed might consider an interest rate hike as early as 2022 end, as the labor market reaches full employment and inflation is at the Fed's target.

According to the CFTC Commitments of Traders report for the week ended June 22 net long for silver futures dropped by 12,193 contracts to 39,871 for the week. Speculative long position dropped by 14,750 contracts, while shorts also dropped 2,557 contracts. 

Silver prices are likely to continue with a negative trend while below the key resistance level of 20 days EMA at $26.678 and 50 days EMA at $26.902 meanwhile it may find support near $25.490 and $25.216.

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