Silver prices rebounded in the morning after several Federal Reserve officials expressed caution about what the next steps should be in forthcoming policy meetings. Atlanta Fed’s Bostic indicates that the Fed stance is probably sufficiently limiting and Chicago Fed’s Goolsbee warning against an interest rate exceed.
Adding to this, the safe haven demand for bullions was weighted by high-level U.S.-China talks, as Presidents Xi Jinping and Joe Biden met in San Francisco. The meeting appeared to have prompted some improvement in Sino-U.S. relations, with both parties agreeing to reopen military channels.
But a comment by Biden after the meeting- where he called Xi a “dictator,” threatened to potentially irk Beijing.
Adding to this, the data released yesterday showed that U.S. retail spending continued to remain strong in October. The reading somewhat offset optimism over a recent decline in U.S. inflation, given that it could still herald sticky price pressures in the coming months. Inflation still remained well above the Fed’s 2% annual target.
Looking ahead, several Federal Reserve officials are lined up for their speech later today which will drive further sentiment for the prices.
Technical Outlook
Silver prices rebounded from the low 72002 and traded at 72830 up 0.63% today. Prices have retreated towards 69053 (low of 13 November 2023) and recovered towards recent high 72935.00.
On the above chart, the recent price action has given a formation of inverted head & shoulder chart pattern, which is indicating a bullish momentum in near future and prices may gain 1.5%-2% very soon. Hence first predicted target could be expected at 73400 and thereafter 74200.00.
On the downside, immediate support is seen at 71680.00 Trader may go long on dip towards 72200-72000 with above stop loss.
Adding to this, crucial support is seen at 71150 and below it the prices may retreat towards 70400-69150.00.
