Silver prices remained under pressure as the dollar hit a six-week high on fears of a hawkish Federal Reserve. Now focus turning to upcoming economic data for more cues on the U.S. economy and monetary policy.
Silver prices dipped after U.S. Federal Reserve meeting minutes showed policymakers are determined to use a slower pace of interest-rate hikes to tame persistently high inflation.
The greenback gained 0.38% and hit a six week high, sending bullions prices down. Rising interest rates push up the opportunity cost of holding non-yielding assets such as gold and other precious metals.
The minutes of the Fed’s February meeting, released yesterday, showed that most members of the monetary policy committee supported raising interest rates for longer this year. But their calls for 25 basis point hikes were regarded as outdated, given that data after the Fed’s meeting showed that CPI remained much stickier than expected.
Looking ahead, revised reading on fourth quarter U.S. GDP is due later in the day. A favorable growth could add pressure on bullions prices.
Inflation readings from the Euro zone which expected to show that price pressures remain elevated across the globe, likely eliciting tighter monetary conditions. A higher CPI of Europe could lead to pressure on bullion prices.
Comex Silver futures fell 1.41% to $21.512 an ounce, while MCX Silver futures fell 0.29% and settled at 65208.
Technical View
Technical View -Since 16 February 2023, MCX SILVER future trading below resistance of 66350.
SILVER future is trading on a verge of short term consolidation support at 65180. If prices break and trade below it then there would be a probability for correction towards 64500-63950 cmp 65252.
On the upside, massive resistance is seen at 66350 and a break above only would open the door for 66950-67350.
All over trend expect to remain indecisive ahead of important US prelim GDP and Europe inflation data.
But looking at the strength in the dollar and sustained trade below its consolidation support line, it’s expected that the Silver price may test its immediate support very soon.Â