Karachi, March 19, 2019 (PPI-OT): Silver
The silver market initially pulled back during the trading session yesterday but found buyers to push higher as the market has seen plenty of volatility in this market, as it continue to see a lot of questions about the Federal Reserve and what its next move is. There will be a lot of attention paid to the Federal Reserve this week, as it get more information on the overall outlook of interest rate hikes for 2019. It appears that investors are trying to break above the psychologically important $15.50 level, and it’s the gateway to higher pricing. The $15.50 level is essentially halfway between support at the $15 level and resistance at the $16 level above. If it can get above that $16 level, it’s likely that it will continue to go higher. The $16.50 level would be next, followed by the $17 level is massive resistance. The alternate scenario is that it break down below the $15 level.
Silver prices gained 0.4 percent to $15.34 an ounce
Silver prices are trading not too far from unchanged levels on the day
The market is potentially setting up for some additional dovish comments from the FOMC this week
A lack of fresh fundamental inputs to start the trading week is keeping trading in many markets more subdued
May Comex silver was last up $0.011 at $15.335 an ounce
Silver prices are slightly higher in lackluster early U.S trading yesterday. A weaker U.S dollar index on this day is working in favour of the precious metals market bulls.
Silver futures rallied during the Asian session as the US dollar rebounded to its seventh session in nine sessions from its highest since the 21th of June, 2017, according to the inverse relationship between them on the eve of the launch of the FOMC meeting in Washington.
Silver futures rose 0.33% to trade at $15.40 an ounce from the opening at $15.34 an ounce, while the US dollar index fell 0.10% to 96.43 compared to the opening at 96.51.
Investor focus is turning to this week’s FOMC meeting of the Federal Reserve, which begins today morning and ends on Wednesday afternoon with a statement. The FOMC is not expected to change its monetary policy at this meeting. The Fed has become more dovish the past few months.
There is no specific, significant driver for gold at the moment, it is likely to remain steady. Fundamentally, uncertainties surrounding trade tensions, U.S-North Korea relations or Brexit have not really attracted significant investment demand in gold.
Investors are also looking the reveal of expectations of growth and unemployment as well as inflation and future interest rates for the next three years by FOMC members. While the Fed’s intention to be patient and monitor the economical data before resuming monetary policy tightening or not.