Silver yesterday settled down by -3.33% at 62206 pressured by a rebound for the dollar as investors continued to assess the latest economic data and signals from Federal Reserve officials for hints on the potential peak of terminal level for the Fed funds rate. While some Fed members scaled back the pace of desired rate hikes in the coming meetings, hot economic data drove other members to call for fast increases to further curb inflationary pressure.
Still, strong demand for solar power, reflected by the rally for solar panel equities, underpinned demand for silver as an electrical conductor. Tight supplies also limited the decline, with inventories at the LBMA and COMEX remaining at low levels. Perth Mint's silver product sales in January fell to their lowest in two years. Silver sales dropped 24.6% on a monthly basis to 1,233,344 ounces – its lowest since January 2021.
Fed funds futures currently price in a 76 percent probability the Fed will raise rates by 25 basis points (bps) at its March 21 to 22 meeting. Market participants also look ahead to the release of the U.S. February jobs reports on Friday for additional clues regarding the extent and duration of the U.S. central bank's restrictive monetary policy.
Technically market is under fresh selling as the market has witnessed a gain in open interest by 25.95% to settle at 17879 while prices are down -2143 rupees, now Silver is getting support at 61230 and below the same and could see a test of 60253 levels, and resistance is now likely to be seen at 64092, a move above could see prices testing 65977.
Trading Ideas:
# Silver trading range for the day is 60253-65977.
# Silver fell pressured by a rebound for the dollar as investors continued to assess the latest economic data
# Fed’s Daly said US rates need to stay higher for longer amid concerns about recent hotter-than-expected inflation data.
# Perth Mint's silver product sales in January fell to their lowest in two years.