The Silver price was neutral in the MCX division, but COMEX Silver rose to around $25.65 per ounce in the North American session after the Federal Reserve decided to hold interest rates at yesterday’s policy meeting.
Federal Reserve officials kept the overnight rate between 5.25% and 5.5%, with the balance tapering at the same rate starting in May 2023.
In their statement, Fed officials emphasized the stability of the U.S. economy and labor force. market power They acknowledged the progress of inflation, but also emphasized that it is a work in progress. They reported that the risks associated with their dual duties are balanced and they continue to rely on information in their decisions.
The Fed’s Powell noted that the recent high inflation reports had not changed the underlying story of slowly easing price pressures in the US, and Fed officials pencilled in three quarter-percentage-point cuts by the end of 2024 as solid economic growth will continue. Additionally, the updated economic projections revealed the Personal Consumption Expenditures Price Index, excluding food and energy (Core PCE), will rise 2.6% by the end of the year, compared to 2.4% in the projections reported in December.
Despite this, silver remained supported by rising geopolitical tensions and an improved industrial outlook from China, the top metals consumer.
China’s industrial production, fixed asset investment, and retail sales all grew more than forecasted.
Looking ahead, BoE policy will be released later today. The BoE expects to keep interest rates unchanged at 5.25%, which could have a neutral impact on bullion. UK preliminary S&P global PMI, Eurozone March and US weekly jobless claims and current home sales are due. All numbers have a significant impact on prices.
Technical Outlook – Silver Price
Silver price traded in a small range yesterday. And after consolidating between 75,500-74,900 to 75,313, increased by 0.03%.
14. Since March 2024, prices have stabilized above the immediate 74,800 and formed an uncertain candlestick, a sign of trader indecision. The recent rise in Comex prices following Fed policy is likely to support the MCX silver price as well. Therefore, it is expected that the price break of 75,750 will soon touch the next resistance at 76,000-77,150.
On the price, a decisive support can be seen at 74,800 and below that, prices may retreat to 74,200 – 73,600.00
Commodity Samachar
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