Silver Fell as Dollar Seen Supported as Traders Concerns Over the Omicron Variant

  • Commodities Analysis

Silver yesterday settled down by -0.84% at 62436 as dollar seen supported as traders balanced concerns over the Omicron variant with expectations of higher US interest rates. Atlanta Federal Reserve President Raphael Bostic was the latest among a growing number of Fed officials stating openness to accelerating the pace of stimulus tapering after he expressed hopes that the momentum of the US economy will carry it through the next wave of the pandemic. He also acknowledged the possibility of at least two rate hikes next year if inflation remains elevated. Markets meanwhile monitor closely any developments on the new variant as Japan suspended all new entries by foreign nationals on Monday.  
 
All eyes now turning to the Federal Reserve chief Powell's testimony on Tuesday, as well as key economic data including the US jobs report on Friday. Contracts to buy previously owned homes in the United States rose 7.5 percent from a month earlier in October 2021, rebounding from a revised 2.4 percent decline in September and easily beating market expectations of a 0.9 percent increase. Demand for housing was supported by fast-rising rents and the anticipated increase in mortgage rates amid low inventories. Contract activity rose month-over-month in each of the four major US regions, with signings rising at the strongest pace in the Midwest (11.8 percent) and South regions (8.0 percent).  
 
Technically market is under fresh selling as the market has witnessed a gain in open interest by 16.16% to settled at 10234 while prices down -529 rupees, now Silver is getting support at 61861 and below same could see a test of 61287 levels, and resistance is now likely to be seen at 63378, a move above could see prices testing 64321.  

Trading Ideas:
# Silver trading range for the day is 61287-64321.
# Silver dropped as dollar seen supported as traders balanced concerns over the Omicron variant with expectations of higher US interest rates.
# Fed’s Bostic was the latest among a growing number of Fed officials stating openness to accelerating the pace of stimulus tapering
# Contracts to buy previously owned homes in the United States rose 7.5 percent from a month earlier in October 2021

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100

Related Articles