Silver rose after US Fed signals rate-hike pause imminent
Silver yesterday settled up by 1.3% at 70212 after the U.S. Federal Reserve toned down its aggressive approach to reining in inflation in a widely anticipated policy statement, and indicated that an end to interest rate hikes was on the horizon. Still, a flight to precious metals proceeded after US Treasury Secretary Yellen denied considering the protection of all deposits in the US banking system by the government. On the supply side, steady outflows in bullion inventories continued to support silver prices. The Bank of England raised its key bank rate by 25bps to 4.25% during the March 2023 meeting, in line with expectations, and pushing borrowing costs to fresh 2008 highs. The central bank aims to tackle high inflation which remains at double-digits and unexpectedly accelerated last month while ensuring financial stability. Annual inflation rate in the UK edged higher to 10.4% last month from 10.1%, the first increase in four months. The U.S. current account deficit narrowed in the fourth quarter amid an improvement in secondary income receipts as well as an increase in the services surplus. Technically market is under fresh buying as the market has witnessed a gain in open interest by 6.78% to settle at 13911 while prices are up 903 rupees, now Silver is getting support at 69654 and below same could see a test of 69096 levels, and resistance is now likely to be seen at 70516, a move above could see prices testing 70820.
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