Silver Price Soars: Consecutive Gains expected or vice versa?

Silver Price Soars: Consecutive Gains expected or vice versa?

Silver Price witnessed an abrupt bullish move last week. The prices touched their highest levels that were seen in September 2023. An anticipation of the end to the U.S. Federal Reserve’s interest rate hike cycle kept the dollar and bond yields under check, which weighted the sentiment.

The dollar index dropped to its lowest since late August against its rivals at 103.074, making bullions less expensive for other currency holders. The yield on the 10-year Treasury US10Y moved to a two-month low of 4.3630 per cent.

Further, Recent data showing signs of slowing inflation in the U.S. has boosted expectations that the Fed could begin easing monetary conditions sooner than expected, this week Personal Consumption Expenditures (PCE) data – Fed’s preferred inflation gauge will be the key trigger for the prices.

Apart from this, Concerns over the supply of industrial silver against the backdrop of robust demand also lifted prices. The Silver Institute stated that global mined silver production is expected to drop by 2% in 2023, largely due to lower output from key producers Mexico and Peru.

In the meantime, rising investment in solar panels, power grids, and 5G networks drove market players to forecast an 8%-10% increase in silver demand.

Silver Price – Technical Outlook:

The latest technical outlook for silver price

Silver price rebounded from the low 72060 and settled at 73884 last week, up by 1.02%. Yesterday,  after hitting a day’s high 76784 settled at 74554 up 1.25%.

 As per the outlook given on 16 November 2023, has proven accurate. With prices jumped above the predicted target 74200.

On the above chart, prices are still trading above the inverted head & shoulder chart pattern neckline, which is indicating a bullish momentum to continue. However, after the recent rally, prices may take a short time correction that would offer a new entry for the long side.  

On the upside, massive resistance is seen at 75250 and a break above will open the door for target 76200-77100.003, else any dip towards 73800-73600 will attract buying activities.

On the downside, immediate support is seen at 72450 below it the prices may retreat towards 71500-70500.

Commodity Samachar
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Also Read: Suspense Booming: Are Unseen Factors Building Anticipation For The OPEC Meeting?, India’s Silver Lining: The Surprising Link Between India’s Solar Growth and Silver Prices

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