Silver price surged nearly four percent on Friday. The prices jumped to a two-week high as the dollar weakened on growing expectations for an interest-rate cut from the Federal Reserve in September, and as tensions in the Middle East bolstered demand for bullion.
The dollar index dipped after the University of Michigan’s Consumer Sentiment Index recorded an improved figure of 67.8 for early August, rising from July’s 66.4. It also outperformed the market expectation of 66.9.
Following a decrease to 60.9 from 62.7, the Current Conditions Index illustrated a decline, while the Consumer Expectations Index registered an increase to 72.1 from 68.8.
In contrast, Housing Starts in the US recorded a decline of 6.8% in July, down to 1.238 million units, signaling a softened housing market. Additionally, Building Permits decreased by 4% after a rise of 3.9% in June.
While market participants remain confident over Fed rate cuts in September, traders pare bets supporting a 50-basis point (bps) interest-rate reduction as fears of the United States (US) entering a recession have waned after robust growth in Retail Sales in July and lower-than-expected Initial Jobless Claims for the week ending August 9.
The next trigger for the bullions will be Fed Chair Jerome Powell’s speech at the upcoming Jackson Hole (JH) symposium, which will be held from August 22-24. Jerome Powell is expected to provide cues for interest rate-cut path for the entire year.
Technical Outlook : Silver Price
Silver price charges witnessed almost 4% advantage, the largest intraday profits after 7 June 2024. The charges settled at 83213 as compared to the preceding week near of 80061.
Formation of an extended bullish candle stick at the above chart is indicating for a bullish momentum in close to future. Further, RSI additionally giving a bullish crossover at the chart.
Hence, its anticipated that prices may want to advantage 1%-1.5% in days to come. However, prices could want to pass above 83450 so as to check 84050-84850.00 n Else, any dip toward 82200-81850 will appeal to shopping for sports with prevent loss beneath 79850.00.
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Commodity Samachar
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