Silver yesterday settled up by 1.06% at 61630 with support from a slight retreat in the dollar ahead of the FOMC minutes release. Besides supporting bullion, hesitancy by the Fed to maintain the pace of its sharp tightening cycle would lift prices due to higher demand for industrial silver usage through electrical conductors. Signs of low supply also lifted prices, as inventories at New York’s COMEX fell 70% in the last 18 months to just over 1 million tonnes. Also, during the period, stocks at the London Bullion Market Association fell for the 10th straight month to a record-low 27.1 thousand tonnes. Federal Reserve Bank of San Francisco President Mary Daly said it is premature and nothing is off the table regarding the size of the rate hike at the next policy meeting in December.
Cleveland Fed Bank President Loretta Mester said she doesn't see any pause in the rate hike cycle yet, while Atlanta Federal Reserve President Raphael Bostic said he favors slowing the pace of interest rate increases, with no more than 1 percentage point more of hikes. The OECD forecasts global growth to ease to 2.2% next year from 3.1% in 2022. In 2024, growth is projected to be 2.7%, helped by initial steps to ease policy interest rates.
Technically market is under short covering as the market has witnessed a drop in open interest by -3.93% to settle at 10395 while prices are up 644 rupees, now Silver is getting support at 61049 and below the same could see a test of 60469 levels, and resistance is now likely to be seen at 62015, a move above could see prices testing 62401.
# Silver trading range for the day is 60469-62401.
# Silver rose with support from a slight retreat in the dollar ahead of the FOMC minutes release.
# Signs of low supply also lifted prices, as inventories at New York’s COMEX fell 70% in the last 18 months to just over 1 million tonnes.
# Stocks at the London Bullion Market Association fell for the 10th straight month to a record-low 27.1 thousand tonnes.
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