Silver declines in anticipation of U.S. macroeconomic data

25 March 2024 58
Silver declines in anticipation of U.S. macroeconomic data

Silver prices moderately declined on Monday, interrupting a three-week rise and contrasting with gold's resilience, which reached record highs. This course of events emphasizes the peculiarities of silver's market position, which differs from gold's position.


While gold continues to find support from central banks, silver remains largely in the hands of smaller speculators and does not have the same level of demand. Last week raised doubts about the investment attractiveness of silver due to rising U.S. Treasury yields and a strengthening dollar.


Silver prices hit a one-month high on Thursday after Fed policymakers indicated a three-quarter percentage point easing of monetary policy by the end of 2024. This forecast came in contrast to recent high inflation readings in the U.S.


Traders now estimate a 74% probability of the U.S. central bank cutting rates in June, according to CME Group's FedWatch tool. Lower interest rates are keeping silver prices at high levels, lowering the opportunity cost of owning bullion.


This week, investors await U.S. Personal Consumption Expenditures (PCE) data on Friday to assess its impact on monetary policy and a possible U.S. rate cut. 


Silver quotes are in a broad tapering correction on the D1 timeframe. The price has pulled back from the resistance of this figure. While the markets are waiting for macroeconomic statistics, silver price may correct. Negative indicators of the Bears Power indicator (standard values) indicate a downward trend in prices.


Signal:

The short-term outlook for Silver is to sell.

The target is at the level of 23.150.

Part of the profit should be fixed near the level of 24.000.

A Stop-loss should be placed at the level of 25.950.

 

The bearish trend has a short-term character, so the trade volume should not be more than 2% of your balance.

This content is for informational purposes only and is not intended to be investing advice.

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