Silver Declined Under Pressure From Receding US Rate Hike Projections.

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Silver Declined Under Pressure From Receding US Rate Hike Projections.

Silver prices exhibited a marginal decline of -0.01% yesterday, settling at 83499. This modest dip occurred as fading hopes of U.S. rate cuts outweighed gains driven by safe-haven demand amid geopolitical tensions in the Middle East. The prospect of expanded sanctions against Iran by both the U.S. and the European Union, coupled with Israel's contemplation of counterattack options, fueled uncertainty in the region. However, this geopolitical turmoil was offset by the dollar's and Treasury yields' consolidation following warnings from several Federal Reserve officials regarding prolonged inflationary pressures.

Federal Reserve Chair Jerome Powell's caution about the potential delay of rate cuts until later this year due to persistently elevated inflation sentiments echoed sentiments expressed by Vice Chair Philip Jefferson and Richmond Fed President Thomas Barkin. Manufacturing activity in the New York region continued to display weakness, with the Empire State manufacturing survey for April coming in at -14.3, worse than expectations. On a positive note, U.S. retail sales surged by 0.7% in March, following a revised increase of 0.9% in February, as reported by the U.S. Commerce Department.

From a technical perspective, the silver market witnessed long liquidation, with a -1.87% drop in open interest to settle at 24699 contracts. Presently, silver finds support at 83030, with a potential downside towards 82560 levels. Conversely, resistance is anticipated at 84145, with a breakout possibly leading to a test of 84790.

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