Silver prices plunged more than 3% last week. As expected on 23 February 2023, Silver prices hit our both predicted levels of 64500-63950. Bullions Prices saw a steep fall as the dollar hit a six-week high on fears of a hawkish Federal Reserve.
Silver dropped towards 63201, its weakest level this year, as concerns over rising interest rates and anticipation of key U.S. economic readings this week kept traders largely on the sidelines.
Bullions marked four consecutive weeks of losses as hotter CPthan expected U.S. CPI and signs of economic resilience in the country drummed up fears that the Federal Reserve will have enough economic headroom to keep raising interest rates.
The dollar has been on a tear this month as stronger than expected economic data, including hot CPI numbers, pointed to the U.S. Federal Reserve raising interest rates further and keeping them high for longer than previously envisaged.
Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% higher at 104.740 and is on course for a monthly gain of around 3%, its first since September.
Today, SILVER prices kept to a tight range after recovering slightly from the morning low 63214.
Looking ahead, bunch of US economic data lined up at 7pm-8.30pm later today. Some amongst them, Goods Trade Balance and CB Consumer Confidence will bring clutter for the market.
Technical View – Sentiment still looks negative, but SILVER will need to break next support 63155
Technical View –Silver prices witnessed a significant fall last week. After breaching its support 65180 dropped towards 63201. Our 23 February 2023 outlook on silver proven accurate.
A long bearish candlestick on the weekly chart is still indicating bearish momentum in near future. However, after steep fall in recent trading sessions some short covering could expect towards 63950-64500.
On the downside, fresh selling could expect below 63155. If SILVER prices break it then there would be probability for correction towards 62500-61950.