SILVER Analysis
Afternoon: Silver Prices Dip Amid Stronger Dollar and Geopolitical Tensions
Highlights:
- Silver prices fell below $33.65 as the strengthening dollar impacted demand.
- U.S. consumer sentiment hit a six-month high, buoyed by optimism among Republican voters.
- Rising Middle Eastern tensions add further volatility, with Israeli airstrikes targeting Iranian defenses.
Overview:
Silver prices experienced a decline, dipping below $33.65 as the US dollar strengthened, impacting silver’s appeal as a safe-haven asset. Investors are closely watching the Federal Reserve’s next move on interest rates, with the CME FedWatch Tool indicating a 94.8% probability of a 25 basis point rate cut at the November meeting. Positive US consumer sentiment data further buoyed the dollar, rising to a six-month high in October. Notably, confidence is on the rise among Republican voters who are increasingly optimistic about a potential Donald Trump victory in the upcoming presidential election.
In the Middle East, escalating tensions are also contributing to market volatility. Israel’s recent airstrikes reportedly targeted Iranian defenses and missile production sites, leading to potential retaliatory threats from Iran. Geopolitical tensions, combined with the upcoming U.S. election and uncertain Federal Reserve policy direction, are prompting caution among investors, who continue to weigh silver's appeal amid a complex market environment.
Market Outlook and Strategy
- Key Economic Data: CBI Realized Sales data from the GBP Zone will provide insights on the UK’s economic health, potentially influencing global sentiment.
- Support and Resistance Levels: Silver prices have support at $33 and resistance at $34. For MCX, support stands at ₹96,000 with resistance at ₹98,400.
Trade Recommendation: Consider selling on a price jump around $33.65, aiming for a target of $33.10 with a stop-loss above $34.
This analysis underscores the importance of monitoring global developments, especially with critical events like the U.S. election and Middle East tensions that are shaping precious metals' performance.
Support and Resistance Levels:
