Silver price witnessed a smart recovery from the key level. Prices jumped over five percent from the weekly.
On Friday sparked over 3% to 91209 as growing geopolitical risks spurred safe-haven demand for the precious metal.
Russian President Vladimir Putin warned about a possible nuclear-capable ballistic missile strikes on Ukraine, following a series of large-scale Russian attacks on key Ukrainian energy infrastructure.
In the Middle East, tensions flared as Israel and Hezbollah exchanged accusations over violations of a ceasefire agreement that went into effect on Wednesday.
Additionally, silver price received support from a weaker dollar and lower Treasury yields, driven by expectations that the US Federal Reserve will continue cutting interest rates.
The dollar index .DXY fell to its lowest in over two weeks, but remains on track for a 2% rise in November as Trump’s Nov. 5 win fuelled expectations of big fiscal spending, higher tariffs and tighter borders.
Adding to this, The Indian rupee ended November with its worst monthly performance in eight, as Donald Trump’s victory in the U.S. election boosted the dollar and U.S. bond yields, while foreign portfolio outflows persisted.
The rupee INR=IN closed at 84.4825 against the dollar on Friday, nearly flat on the day but within touching distance of its lifetime low of 84.5075 hit last week.For the month, the rupee fell by nearly 0.5%, the steepest decline since March. Also supported the pricse.
Concerns over US President-elect Donald Trump’s proposed tariffs on China, Mexico, and Canada also eased, with traders awaiting more details on the plans.
Technical Outlook – Silver Price
Silver prices rebounded from the low of 86,833 last week, sparked to the high of 91,866 on Friday. The prices settled at 91,209,up 3.64%.t
From the start of the month, silver has been under pressure, from its peak of 99,699 and touched a low 86,844 on Mid of the month. However, since then prices are consolidating above it on a closing basis.
The technical chart suggests this recovery is likely to continue, with a break above 91,500 potentially paving the way toward the next resistance at 92,050–92,850. Alternatively, failure to break above this level may lead to retracement, with immediate support at 90,500–89,550 before any significant move.
Traders may take action after a breakout of 91,500 or wait for a dip.
Until then, Happy Trading!
Commodity Samachar Securities
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