Silver prices closed at 72247, down 0.13%, as investors balanced anticipate early interest rate reduces while waiting for the Federal Reserve policy rate guidance. By 2024, the world’s silver deficit is expected to have decreased by 9% to 176 million troy ounces, with rising demand being offset by a 4% recovery in mine production.
Silver, which is use in many industries such as electronics, solar panels, electric vehicles, and jewellery, is predict to see a 1% rise in worldwide demand to 1.2 billion ounces. Fueled primarily by stronger industrial consumption, despite the fact that the market is experiencing a fourth year of structural deficit.
Due to a slowdown in inflation and anticipation of impending interest rate cuts by the Federal Reserve. U.S. consumer confidence hit a two-year high of 114.8 in January.
The unexpected increase in U.S. job openings in December. However, points to a strong labour market that might postpone interest rate reductions in the first quarter.
Technically, the open interest in the silver market is dropping by -0.3%, indicating a lengthy liquidation that ended at 2311. Silver prices has support at 72035; a breach below that could lead to a test of 71820.
Resistance is seen at 72575 on upside, and a move above there could take price as high as 72900. In order to be aware of any possible market movements in the next sessions. Traders should keep a close eye on these levels.