Silver Analysis
Afternoon: Double TOP observed in Silver as Prices Dip Amidst Central Bank Decisions and Economic Data
Highlights:
- Silver prices dip post-Fed decision on interest rates
- Unexpected decline in US unemployment claims
- Swiss National Bank lowers benchmark rate, adding market volatility
Overview:
In the wake of recent developments in central bank policies and key economic indicators, silver prices experienced a notable dip from near-year highs. The Federal Reserve's decision to maintain its projection of three interest rate cuts in 2024 contributed to this trend, bolstering demand for non-yielding assets. Additionally, the Bank of England's decision to keep interest rates steady, despite two members dropping calls for further tightening, underscored a cautious approach towards monetary policy adjustments. Meanwhile, the unexpected move by the Swiss National Bank to lower its benchmark rate by 25 basis points added further volatility to the market.
On the economic front, the latest data revealed a surprising decline in the number of Americans filing new unemployment claims, indicating potential resilience in the labor market. Moreover, sales of previously owned homes surged by the most in a year during February, suggesting robust activity in the housing sector despite ongoing challenges.
Key Economic Data:
- German ifo Business Climate (Euro zone)
- Retail Sales m/m (GBP zone)
- Fed Chair Powell Speaks (US Zone)
Technical Analysis:
- Silver prices are expected to find support at $24.10 and resistance at $24.90.
- Silver MCX prices are anticipated to receive support at 74,000 and encounter resistance at 76,000.
Trading Strategy:
Considering the current market dynamics, an actionable strategy would be to sell on a jump around $24.65, with a target price of $24.20. Implementing a stop loss below $24.95 would help manage risks effectively.
This comprehensive analysis encapsulates recent market movements, central bank decisions, key economic indicators, and a prudent trading strategy. Stay tuned for further updates and insights.
Support and Resistance Levels:
