Silver bears seeking a downside weekly continuation

• Silver is on the verge of a bearish weekly close which opens prospects of a downside extension.
• Bulls have managed to sidestep the first attempt to break lower. 

The price of silver was volatile on Thursday, moving between a range of $24.4105 and $25.1885. 

There was a mixed sentiment in markets following news that US President Joe Biden plans to lift vaccination numbers while data disappointed.

The US dollar scored fresh highs before pulling back a touch to end on Wall Street consolidating around 92.80 as measured by the DXY index. 

Jobless numbers for the US fell more than expected while US Gross Domestic Product figures for Q4 2020 were revised up to 4.3%, from 4.1%.

''Initial jobless claims in the US fell nearly 100k to 684k, which was well below expected numbers but these new claims remain elevated relative to normal,'' analysts at ANZ Bank explained. ''Continuing claims now stand at 3.8 million having fallen quite sharply in the latest weekly data.''

Meanwhile, the analysts said the annualised GDP data ''indicates the US economy expanded a little faster than previously reported.''

''The biggest change was in business investment with investment in inventories, intellectual property and residential housing all a little higher than previously reported. Exports were also revised up for Q4 while growth in consumer spending softened slightly to 2.3%, from 2.4%.''

Meanwhile, precious prices are trading weak despite slumping real yields, ''highlighting the change in regime from an inflation-hedge product for much of last year into a safe-haven asset today,'' analysts at TD Securities argued. The analysts explained that this doesn't bode well for investment flows.

Silver technical analysis

The bears attempted a break to the downside but were met by strig demand from the bulls, taking the price right back to the start again. 

In doing so, the bulls are seeking both a close above the trendline on the 4-hour time frame and a bullish close on the weekly chart to open prospects of a significant test of the prior support structures. 

That being said, a weekly bearish close will tip the balance into the bear's favour intent on a downside weekly extension.