Silver prices continued trading upside for a third consecutive week. Despite Senate testimony by the Federal Reserve’s supervisory chief Michael Barr not expanding on contagion worries about the U.S. banking crisis unearthed three weeks ago, prices were able to gain more than half percent since the start of the week.
The US dollar fell to a seven-week low after Federal Reserve officials adopted a less hawkish stance on interest rates, supporting the white metal prices.
Comex Silver futures currently placed around $23.67, up over 1.40% during early European trade Hit seven week high. MCX silver closed at 70777, up 0.27% yesterday.
However, the white metal retreated slightly at the start of the week as repeated reassurances of stability in the banking sector helped ease concerns over broader contagion from the collapse of several banks this month.
From the Economic Data Calendar
Later today, Bullion prices will react to final US growth numbers for the final quarter data.
US economic growth expects to come at 2.7% unchanged from the previous 2.7%.
Other reports include weekly initial jobless claims will impact dollar and silver prices.
Above data to be released at 6.00pm.
Technical View
Silver is extending its bullish momentum for the third consecutive week. Last week it had gained more than 2.70% and settled at 70411. And from the start of the week it gained 0.52%, from the low of 69555 and yesterday settled at 70777.
As per our view, “Silver expects to shine again” released on 22 March 2023, proven accurate with prices heading towards second target 71000. However, prices rebounded from 68127, before our levels of 67500-67300 – https://commoditysamachar.com/silver-expect-to-shine-again/
Technical View- A long bullish candlestick on weekly chart is still indicating strong bullish momentum in near future. Further, MACD is also indicating an upside momentum.
Adding to this, Fibonacci retracement drawn on the above chart, is indicating a next upside projection of 71850 in near future. Further, 72010 will act as a massive resistance and a break above only will open the door for next level 72500-72850.
On the downside, immediate support is seen at 69050 and a break below only will create a probability for a correction. And silver prices may retreat towards 68200-67650.