Karachi, March 20, 2019 (PPI-OT): Silver
Silver markets rallied a bit during the trading session yesterday, running into the $15.50 level. By doing so, it is starting to see sellers come into the market and that of course can have an effect on what happens next. Nonetheless, it all comes down to the Federal Reserve and the next couple of days, as it will influence the US dollar in general. If that’s going to be the case, it’s very likely that it continue to see a lot of choppiness, and of course volatility over the next 48 hours. It can push above today shooting star at the $15.50 level, then the market is free to go to the $16 level. If it did break down below there, it would be an extraordinarily negative sign and it could send the market much lower. But if it did break down below the $15 level could open up the door down to the $14.50 level, possibly even lower than that.
Silver continues to be one of the weakest performers in the precious metals space
Investors since last year have favoured the dollar as a safe haven against the U.S-China trade dispute
The easy monetary policy will continue to lift precious metals overall
Silver prices dipped today 0.1 percent to $15.33 an ounce
May Comex silver was last up $0.038 at $15.36 an ounce
Silver prices are moderately higher in U.S trading yesterday. A weakening U.S dollar index and crude oil prices at a four-month high supported the precious metals markets today.
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.
Silver rose by 0.5% to trade at $15.40 an ounce from the opening of $15.32, the highest at $15.41 and the lowest at $15.31. Yesterday, silver rose 0.4%, the second consecutive daily gain, supported by the fall of the US dollar and the rise in copper prices in the global market.
The dollar fell 0.2% yesterday, extending its losses for the eighth day in a row, reaching a three-week low of 95.76 points, due to the continued sell-off the greenback against a basket of other currencies.
The fall of the US currency comes is in favour of the rise in the prices of silver and other metals denominated in US dollars, making them low-cost for holders and consumers of other currencies. Risk appetite in the world marketplace remains elevated, as there are no major geopolitical matters jolting the world markets.
The current US Dollar Declines comes ahead the Federal Reserve’s monetary policy meeting, as most participants in the financial markets expect the bank to make a pessimistic move as risk increases around the US economy, especially slowing global growth.