The price of silver rose by more than one percent yesterday. White metals rose to a two-week high as investors awaited the first interest rate cut in May after fresh US data. In addition, the decline in US government bond yields, which followed a series of mixed US economic data, also had an impact.
US retail sales fell by a more than expected 0.8% in January, the biggest drop since March 2023. The decline was mainly due to sales volume at car dealerships and gas stations, as stormy weather further reduced sales.
Initial jobless claims also unexpectedly fell to a four-week low, easing strong nonfarm payrolls released earlier. Initial jobless claims came in at 212,000 last week, below both the forecast and last week’s figure of 220,039. This is a somewhat unexpected development as profits were expected to rise due to several layoff announcements by companies.
Meanwhile, the president of the Federal Reserve of Chicago, Austan Goolsbee, said that the central bank should be careful not to wait too long before cutting interest rates. Meanwhile, Federal Reserve Deputy Policy Director Michael Barr said the latest inflation data showed a bumpy road ahead of the 2 percent inflation target on Wednesday.
Today, US Macro economic data including Core PPI m/m, PPI m/m, Building Permits, Prelim UoM Consumer Sentiment and FOMC Member Barr and FOMC Member Daly Speaks, are set to release which could give direction to the bullion’s prices.
Technical Outlook – Silver
Since February 14, 2024, the price of silver has fallen. Prices recovered from a low of 69128 and reached a high of 71443 yesterday. Prices fall to 71121 for an intraday gain of 1.38% from the previous day’s close 70152.00
The above chart indicates the formation of long bullish candlesticks from aggressive candlesticks. 69150 low, same on November 3, 2022.
In addition, prices are exchanged between descending channels. A break on either side of the channel could see massive near-term volatility. In addition, the RSI 14 and its 9 SMA also provide a positive crossover, adding to the positive sentiment.
So the momentum in the white metals can remain bullish. However, priests may need to break above 71850 to test 72550-73050.00, otherwise any dip to 70400-70450 could attract buying.
On the downside, crucial support at 69150 is below it, prices may fall to 68550-68150.00.
Commodity Samachar
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Also Read : Economic Outlook: US Core PPI Data Taking the Spotlight Today? , Economic Outlook: Will the US Data Cluster Chart a New Course for the Market?
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