The silver prices, which ended up falling by -0.9% to $70816. This was mostly caused by mounting doubts about when the US Federal Reserve (Fed) would cut interest rates. Although the market remains attached to the possibility of a rate cut in March.
Recent cautious remarks made by Fed officials, such as Raphael Bostic, President of the Atlanta Federal Reserve, have introduced some skepticism. Bostic notes that rate reductions should start in the 3rd quarter and emphasises the need to adjust policy to be less stringent.
This view is support by US Federal Reserve Governor Christopher Waller’s remarks, which show that there is no pressing need for quick rate cuts.
The unexpectedly steep drop in U.S. jobless claims. Which highlights an exceptionally tight labour market, has reduced anticipation of an impending interest rate cut.
Investors also retreated from their bets on monetary easing as a result of policymakers’ hawkish comments and better-than-expected U.S. retail sales data. The November business inventories report, which shows a second straight month of declines.
Raises the possibility of a drag on fourth-quarter economic growth. As anticipated, inventories decreased by 0.1%, but year-over-year growth was 0.4%.
Technically, the silver market is characterise by new selling, as open interest increased by 7.21% to settle at 30804 points. Silver prices has support at 70360 after the accompanying price decline of -644 rupees.
A breach below that level could trigger a test of the 69905 levels. Resistance on the upside appears at 71260; a breakthrough there could propel prices to reach 71705.