Silver – Likely to remain positive.

Silver prices rose sharply yesterday as the dollar fell after US inflation data matched expectations and traders focused on further comments from Federal Reserve officials on interest rates.

The key price gauge related to PCE, which is closely watched for upcoming decisions , rose in January last month compared to 0.4%, which is in line with market expectations.

Annual interest rates, meanwhile, rose to their lowest level since 2021, and the strengthening inflation arc of beliefs remained on track. In addition, the first jobless claims slightly exceeded forecasts, allaying some concerns about a tight labor market. Further, Euro zone inflation dipped further this month, strengthening the case for the European Central Bank to start easing interest rates from record highs later this year, even if data suggest a much slower decline in underlying price pressures. Inflation dipped to 2.7% from 3.1% in Germany, to 3.1% from 3.4% in France, and to 2.9% from 3.5% in Spain, with falls driven primarily by energy and food prices.

Technical Outlook

Silver prices found support from the February 27, 2024 low of 70,617, yesterday prices rose to 71,540 and settled at 71,279, up 0.72%.

On the above chart, silver price broke the channel line down resistance, indicating bullish momentum. Near future. Prices are also trading above SMA 20 and forming a higher structure.

Hence, silver prices are expected to rise to 72080-72600.00 and any dip to 70500-70150 could attract buying activity. On the upside, a break above 71,800 opens the door to resistance above.

However, support at 69,600 below 68,800.00 is important.

Commodity Samachar
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Also Read: US Core PCE: Can It Reshape the Market Today? , Gold Outlook: Can US PCE ‘Catapult’ the Rising Prices?

Recommended Read: Forex Newsletter – 29 FEB 2024

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