Silver Prices Rose On Hopes For A Fed Rate Cut In June.

  • Kedia Advisory
  • Commodities News
Silver Prices Rose On Hopes For A Fed Rate Cut In June.
Credit: © Reuters.

Silver demonstrated a strong performance yesterday, closing with a notable gain of 1.65% at 73467. This upward movement was driven by expectations of a potential rate cut in June, particularly following data revealing a slowdown in U.S. manufacturing activity and a decline in consumer sentiment in February. The silver market also responded to global cues, including U.S. inflation aligning with estimates and progress on disinflation in Germany, France, and Spain. Federal Reserve officials, including New York Fed President John Williams, indicated the possibility of interest rate cuts later in the year, contingent on incoming data.

While Williams acknowledged a potential rate cut, Atlanta Fed President Raphael Bostic emphasized that the central bank has not declared victory over inflation, advocating patience in monetary policy decisions. Boston Fed Bank President Susan Collins suggested that easing policy might become appropriate later in the year, emphasizing the challenging path to returning inflation to the 2% target. Despite an unexpected rise in first-time claims for U.S. unemployment benefits, the market maintained its positive momentum, reflecting the focus on broader economic indicators.

From a technical standpoint, the market is experiencing fresh buying, with a 1.3% increase in open interest, settling at 22122. Prices surged by 1189 rupees. Silver is currently finding support at 72375, and a breach below could lead to a test of 71280. On the upside, resistance is anticipated at 74095, with a potential move above testing 74720.

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