Silver prices climbed nearly three percent on Monday, near to one-month highs, as investors anticipate key U.S. inflation data this week, which could solidify expectations of a Federal Reserve rate cut.
Silver also rose alongside gold, buoyed by China’s central bank resuming gold purchases after a six-month hiatus. Gold prices gained as the People’s Bank of China (PBOC) resumed buying in November, a move seen as supportive for bullion prices amid global economic uncertainties.
Analysts suggest that the PBOC’s decision to increase gold reserves, particularly after Trump’s recent election victory, reflects a strategic approach to economic stability. Central bank buying, easing monetary policies, and geopolitical tensions have propelled gold to record highs this year, with a nearly 28% increase, marking its best performance since 2010.
Gold’s safe-haven appeal remains strong in an environment of economic and political uncertainty, complemented by expectations of further economic support measures from China, as outlined in the upcoming Central Economic Work Conference.
Traders now await U.S. inflation data on Wednesday for further insights into the Federal Reserve’s next policy steps.
Technical Outlook of Silver Prices Jump
Silver prices rebounded from the day’s low of 91,980 and settled at 95,197, gained by 2.97%.
On the chart, prices have been consolidating above the key support level of 91,500 for the past four trading sessions while forming a long bullish candlestick. Additionally, prices are finding support from the 50-day short-term moving average.
The near-term momentum remains positive; however, after the sharp rise in the previous session, prices may consolidate around 94,250–94,300, which could present a buying opportunity. Meanwhile, a break above 95,880 could lead to further gains, potentially reaching 96,500–97,200.
On the downside, key support is seen at 92,800, with a break below this level potentially shifting the trend lower toward the immediate supports at 91,750 and 90,800.
Until then, Happy Trading!
Commodity Samachar Securities
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