• Silver price dives perpendicularly to near $21.50 amid strength in the US Dollar.
• The US Dollar eyes more upside as the US Manufacturing PMI outperformed expectations but remained below the 50.0 threshold.
• Silver price delivers a breakdown of the Head and Shoulder pattern, which results in a vertical sell-off.

Silver price (XAG/USD) faces an immense sell-off as the United States Institute of Supply Management (ISM) reported a higher-than-anticipated Manufacturing PMI for September. The economic data landed at 49.0, much higher than estimates and the former release of 47.7 and 47.6 respectively.

In spite of upbeat factory activities, the Manufacturing PMI remained below the 50.0 threshold for the 10th time in a row. The New Orders Index for the US factory also outperformed expectations and jumped to 49.2 from the August reading of 46.8.

The US Dollar Index (DXY) recovered its entire gains, and jumped to near 106.80, as the market mood dampened after weak Caixin Manufacturing PMI data for September. China’s factory activities missed estimates by a wide margin but managed to remain above the 50.0 threshold. The economic data landed at 50.6 lower than estimates and the August reading of 51.2 and 51.0 respectively.

The US Dollar is expected to remain volatile ahead of the speech from Federal Reserve (Fed) chair Jerome Powell. Investors anticipate a hawkish interest rate guidance as the United States economy is resilient. The US economy is outperforming other developed economies due to upbeat labor market conditions, robust consumer spending, and strong wage growth