Silver seems to attract buyers in the near future

Silver prices are near weekly highs as bets continue that the Federal Reserve will cut interest rates  in early 2024. However, prices are struggling to capitalize on the weekly gains recorded over the past two days and are trading in a tight trading range.

 The Fed is likely to have ended its tightening campaign and is expected to start cutting rates in 2024, with traders betting on the first rate cut in March.

At the same time, ECB and BoE resisted talks on easing monetary policy but kept interest rates at current levels. Elsewhere, the Bank of Japan left policy unchanged and gave no further guidance.

A lower interest rate environment increases the attractiveness of silver as a losing instrument and improves the possibilities of its industrial use. 

Technical Outlook

 Silver prices have been in a small range since the beginning of the week. Prices tried to break the immediate resistance at 76350 and found support around 75200 during the closing period.

 Yesterday it fell to 75862, up 0.44%, now 75942, up 0.13%.

 The formation of three ascending candlesticks in the above chart indicates an uptrend in the near future. However, prices would need to cross above 76350 in order to test 77000-77500.00.

 On the downside, crucial support is seen at 75050 and below it prices may retreat towards 74200-73550.00.

  Hence, fresh buy could expect above 76350 in silver future.

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