Today’s information is about whether silver price will hold or break.!!
Silver prices fell by more than two percent yesterday. Prices fell sharply as the dollar recovered, supported by a modest rise in US Treasuries spurred by Federal Reserve (Fed) Governor Michelle Bowman.
Bowman emphasized that monetary policy should remain stable “for some time” and will probably be enough to reduce inflation. He downplayed interest rate cuts this year and said he was prepared to raise rates “if inflation continues to stagnate or even reverse.”
His colleague Lisa Cook recently took a more neutral stance, saying inflation is likely to fall “sharply” next year and adding that policy easing is needed to balance the Fed’s dual mandate.
Regarding economic data, the US Conference Board revealed that consumers are becoming less optimistic. According to the survey, consumers’ views of the current situation improved; nevertheless, “their expectations for both future income and business conditions weakened, weighing down the overall Expectations Index.”
A report showed U.S. single-family home prices increased at a steady pace in April, rising 0.2% on the month after being unchanged in March. In the 12 months through April house prices increased 6.3% after advancing 6.7% in March. That pushed the dollar a little higher.
U.S. consumer confidence, however, slightly eased in June, with the index at 100.4 from a downwardly revised 101.3 in May, according to the Conference Board. The June number, however, was marginally higher than the market forecast of 100. The report didn’t really hurt the dollar.
In the meantime, traders are awaiting the release of the Fed’s preferred gauge for inflation, the Personal Consumption Expenditures (PCE) Price Index. If the data edges below the previous reading and estimates, it will reignite rate cut hopes for the year ahead.
US Dollar Index (DXY), which tracks the value of American currency against a basket of six other currencies, gained 0.13% to 105.61. In the meantime, US 10-year Treasury note yield shifted flat at 4.242%.
Technical Outlook Of Silver Price
Silver fell from an intraday high of 89,156 and touched a low of 86,710 before closing at 86,937, down 2.32%.
The formation of a long bearish candlestick suggests that the decline may continue. In addition, prices remained below the short-term moving average. Now prices should fall below the previous demand zone around 86,855 to continue the decline to 86,000-85,500.00.
Otherwise, prices can be between 86,900 and 90,600.00.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
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