Will silver prices find support here?

Silver prices rose from the lows of the day and were up more than half a percent yesterday. Prices rose as rising geopolitical tensions increased the precious metal’s appeal.

The precious metal is attracting significant bids as a drone attack on US bases in northeastern Jordan weighed on market sentiment. In response, US President Joe Biden promised a retail sale at a time and place of his choosing.

Meanwhile, Iran denied claims that they were involved in the air strikes. In addition, the inflation outlook was softened by a modest increase in US personal consumption expenditures (PCE) in December.

Going forward, precious metal prices will react to the Federal Reserve’s interest rate decision, followed by the Institute for Supply Management’s (ISM) Manufacturing PMI and Nonfarm Payrolls report in December.

The Fed is expected to keep interest rates between 5.25 and 5.50 percent, but fresh guidance on the rate level will be keenly followed. Investors will be looking for clues as to whether Federal Reserve policymakers will continue their trend of keeping interest rates on hold through June, or whether they are likely to signal an uncertain decision in March or May.

Technical Outlook

The price of silver rose by 0.84% ​​yesterday. Prices rose from the low of the day of 71704 and settled at 72377, compared to the previous day’s closing price of 71773.00

As of 01/23/2024, prices turned positive and recovered more than 2%. On the chart above, silver prices were above the 20 DMA and formed a long bullish candlestick. RSI 14 and its 9 SMA also gives a positive crossover.

Therefore, the short-term outlook is expected to remain positive. But prices should break this massive resistance at 72450 to test 72800-73500. Otherwise, any dip to 71800-71750 could attract buying activity in the near term.

On the downside, major support is seen at 71050 below it, prices may pull back to 70600-70050.

Commodity Samachar
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