Silver prices closed up 0.2% at 70957, helped by a weaker dollar ahead of key US economic data on durable product orders, new home sales, 4thQ gross domestic product (GDP) and personal income and spending.
As anticipated, the Bank of Japan kept its ultra-loose policy. And the Fed’s Governor Christopher Waller’s comments indicated a cautious approach to swift rate cuts. Which made investors eager to hear more from Fed members in order to get a clearer picture.
Interest rate cuts were tempered as a result of a sharper-than-expected drop in the United States jobless claims, which highlighted a previously tight labour market. Betting on monetary easing has changed as a result of encouraging retail sales statistics and cautious remarks from policymakers.
In order to get more clarity on the timing and velocity of prospective interest rate reductions. Investors are currently awaiting word from the European Central Bank’s policy meeting later this week.
This week’s highlights are the advance GDP predicts for the 4th quarter. The United States flash PMI report, and statistics on personal consumption expenditures. According to CME’s FedWatch Tool, anticipations for the timing of the 1st interest rate reduce have changed. Even though the Fed is still expected to maintain unchanged rates at the conclusion of the policy meeting.
From a technical perspective, the silver market is experiencing short covering, as evidenced by the 3.02% decrease in open interest to 29901 and the 141 rupee price increase.
The levels of 70490 could be test if silver prices breaks below its support level of 70725. If the price moves above predicted resistance at 71200, it may test 71440 once more.