Silver markets went back and forth during the day yesterday, and that it could be a sign that starting to see a bit of stability after a massive selloff. The $16 level underneath is very supportive, as it has been important on longer-term charts. A break down below the $16 level allows this market to unwind to the $15.50 level. That is the bottom of the multi-year consolidation area, and therefore that the buyers will return in that area. However, in the short term it might not even get that low. If it can break above the $16.35 level, it is likely to see this market go looking towards the $16.80 level again. The US Dollar Index should be paid attention to, as the US dollar strength has been paying the most attention to when it comes to precious metals lately. Economists think that as the US dollar rallies, that will continue to weigh upon gold. It makes sense that it would continue to see a lot of choppiness.
Silver prices climbed today as the dollar slipped after climbing to this year’s high
If the US dollar continues to strengthen, that of course is bad for silver
The surging U.S dollar has been a major factor which lent just a bit of support to the precious metals
Silver prices turned positive as both the dollar and U.S bond yields fell from their highs
The U.S dollar index that tracks the greenback against a basket of six major currencies last stood at 93.12, down 0.16%
Silver was up 0.4 percent at $16.41 an ounce, after touching the lowest in two weeks at $16.17 in the previous session. Silver are seeing follow-through selling pressure after strong losses. July Comex silver was last down $0.044 at $16.225 an ounce.
The surging U.S dollar is a major factor working against the precious metals market bulls over the past few weeks. The U.S dollar index hit another five- month high overnight. It’s important to remember that trends in the currency markets tend to be stronger and longer-lasting than price trends in other markets.
The silver bulls need a dose of geopolitical unrest to wrestle their metals away from the grip of the appreciating greenback. Any tensions in the currency markets would likely prompt safe-haven demand for silver.
The Euro zone consumer price index for April came in at up 0.3% from March and up 1.2%, year-on-year. Those numbers were in line with market expectations. Japan’s first-quarter GDP showed a growth rate of -0.2%, which was below forecasts for no change in growth.
Silver futures due on July 15 rose 0.93% to $16.420 an ounce from the opening of $16.269, while the dollar index rose 0.07% to 93.29 from the opening of 93.22.
Earlier US data showed housing starts fell 1.8% in April to an annualized 1.352 million units, compared to a 4.1% rise in March to 1.377 million, while analysts expected a 2.1% dip to 1.350 million.
Building permits fell 3.7% to 1.287 million, compared to a 3.6% rise to 1.336 million in March, while analysts expected a 0.7% dip to 1.310 million. While US industrial production rose 0.7% in April, same as March and beating expectations of a slowdown in growth to 0.6%.
This article provided by NewsEdge.