• Silver price has sensed a buying interest after testing Monday’s low around $20.55.
• Four-day losing spell in the Silver price has paused for now as investors have ignored Fed’s rate hike fears.
• Upbeat consumer spending in the US economy amid strong wage gains is supporting higher Fed’s interest rate projections.

Silver price (XAU/USD) has rebounded after gauging buying interest around $20.55 in the Tokyo session. On a broader note, the white metal is inside the woods in a range between $20.55-20.80 as investors have shifted their focus toward the release of the United States ISM Manufacturing PMI gamut on Wednesday.

Four-day losing spell in the Silver price has paused for now as investors have started digesting the fact that the Federal Reserve (Fed) is required to make the monetary policy more restrictive to achieve price stability. However, the losing spell could continue as geopolitical tensions between the US and China have not been shrugged off yet.

S&P500 futures have extended their recovery further amid a revival in investors’ risk appetite. The US Dollar Index (DXY) has continued to juggle around 104.30 after a steep correction from around 105.00. Market sentiment is turning positive as investors have ignored hawkish Fed fears, however, the US yields are not in a mood to deliver a decline. The alpha offered on the 10-year US government bonds has rebounded to near 3.93%.

Upbeat consumer spending in the US economy amid strong wage gains is supporting higher interest rate projections for the Fed as the battle against persistent inflation is getting brawled further.

Silver technical analysis

Silver price is displaying a consolidation formed in a range of $20.55-20.80 after a sheer perpendicular downside on an hourly scale. The asset looks vulnerable as the 20-period Exponential Moving Average (EMA) at $20.65 is acting as a barricade for the Silver price.

The Relative Strength Index (RSI) (14) is struggling to surrender the bearish range of 20.00-40.00.

Silver hourly chart