Silver prices rose 0.22% the prior day, setting at 71615, boosted by a weaker dollar and a drop in Treasury yields. A cautious stance following a steeper-than-expected drop in the United States unemployment claims. Which suggested a historically tight labour market—impacted market sentiment.
This consequently reduced anticipations of interest rate reductions. Previously, hawkish remarks made by policymakers and robust retail sales data from the United States had caused investors to reevaluate their expectations for monetary easing.
The second following month of declines in United States company inventories in November. Especially in wholesale and retail stocks, was a noteworthy factor influencing the dynamics of the market.
FOMC member Waller’s opposition to rate cuts, citing a strong labour market and economic growth. Contributed to a shift in market projections.
According to CME’s Fed Watch Tool, there is currently a 50% chance priced in for a the Federal Reserve rate reduce in March. A significant decrease from the 90% likelihood earlier in the month.
The ECB’s meeting minutes showed officials were optimistic about inflation gradually returning to target. But they also stressed the need to keep a tight policy in place for the foreseeable future.
Technically speaking, the market is showing signs of new buying as evidenced by the 3.28% rise in open interest that settled at 27904 and the 159 rupee price increase.
Silver Prices is finding support at 71290; a break below that level might put it to the test at 70965. Resistance on the upside is probably at 71800, and a move above that could push prices up to 71985.