Silver prices rose 1.29% yesterday, closing at 71869, boosted by a weaker dollar and a falling of treasury yields ahead of key economic statistics releases. The Federal Reserve’s key inflation indicator, the PCE Index. And the impending fourth-quarter US GDP report are anticipated to provide the market more guidance.
The US Composite PMI for January 2024 from S&P Global (NYSE:SPGI) jumped to 52.3. And marking the fastest increase in business activity since June 2023.
Furthermore, market dynamics were influenced by expectations regarding monetary policy decisions made by major central banks. Such as the Bank of Japan (BoJ) and the European Central Bank (ECB).
Traders’ sentiment was impacted by the ECB’s impending monetary policy decision as well as signals from the governor of the Bank of Japan that suggested a rise in interest rates in April.
Technically speaking, the market is experiencing short covering as evidenced by the 13.68% decline in open interest that led to the market closing at 26303. The current level of support for silver is 71095. And a breach below it could result in a test of 70315. Resistance on the upside is seen at 72410; if prices move past this mark, they might test 72945.
The release of economic data, decisions made by central banks, and changes in geopolitics should all be closely watched by traders because they will probably have a significant impact on how the silver market develops in the near future. A number of factors have contributed to the recent uptrend in silver prices. And investors will be closely observing upcoming economic indicators for additional information.