SILVER Analysis
Afternoon: Silver Prices Decline Amid Dollar Strength and Market Focus on Chinese Policy Signals
Highlights:
- Silver under pressure as dollar strength continues amid US economic optimism.
- China's manufacturing recovery offers cautious hope for industrial demand growth.
- Markets eye upcoming Chinese policy announcements and global economic data.
Overview:
Silver prices weakened as the US dollar strengthened on positive sentiment surrounding the US economy. The dollar's rally was further fueled by President-elect Donald Trump’s warning of 100% tariffs on BRICS nations if they support creating a currency to rival the dollar. This aggressive stance bolstered the greenback’s appeal, pressuring silver and other precious metals.
China, the world’s largest consumer of metals, reported its second consecutive month of manufacturing growth in November, driven by stimulus measures from Beijing. This uptick provides cautious optimism for industrial metal demand. However, market participants remain vigilant, awaiting key political meetings in China this month that could introduce policies impacting economic growth and industrial output.
Key data releases this week include French Government Budget Balance, Spanish Unemployment Change, and JOLTS Job Openings from the US. These indicators will help investors gauge the broader economic landscape and its implications for silver demand.
Trading Recommendation
Action: Buy on drop till 30.80 targeting 31.50 which invalidates below 30.40
Support and Resistance Levels:
