Karachi, March 22, 2019 (PPI-OT): Silver
Silver markets broke higher on the initial gap during the trading session yesterday, reached much higher but then turned around to show signs of exhaustion again. By doing so, if the silver market is probably going to drop from here, at least pulling back in the short term. Overall, it looks like the market is going to find the $15.50 level significant, as it has seen several pullbacks from that level. However, if it can turn around and break above the top of the candle stick for the yesterday session, it could go much higher. It suspect that were going to get a pullback to roughly $15.28 though, so having said that short- term selling will probably continue to be a major issue. The US dollar will of course have a significant influence on what happens with the precious metals market, as a stronger US dollar will typically work against both silver and gold.
Silver prices gained 0.1 percent to $15.48 per ounce
The U.S dollar and stock market are still the strongest assets even if the U.S economy is slowing down a bit
Silver prices were modestly up but well down from their daily highs that saw three-week highs in earlier U.S trading
May Comex silver was last up $0.077 at $15.39 an ounce
U.S stocks initially were supported on the dovish Fed stance
Silver futures fluctuated higher in a tight range to see their eighth session rise in 12 sessions since December 26 as the dollar index fell for the ninth session in 12 sessions from its highest since 21 of June 2017 according to the reverse relationship between them and economic data expected by the US economy, the largest economy in the world.
Silver futures rose 0.06% to currently trade at $15.48 an ounce, resuming its rebound from a three-month low against the opening at $15.47 an ounce, amid a drop in the US dollar index by 0.01% to 95.31, resuming its falls from the highest in nearly two years compared to the opening at 95.32.
Investors expect the US economy to release the preliminary reading of the PMI index for March, amid expectations of the expansion of the industrial sector to 53.5 compared to 53.0 in February, and a shrink in service sector to 55.7 versus 53.0 in February.
The FOMC statement said the Fed would keep U.S interest rates unchanged and plans no more rate hikes this year. The statement also said the U.S labour market remains strong but U.S economic growth has slowed a bit, as evidenced by slower household spending and lower business investment.
To the release of housing market data with the existing home sales index, which may reflect a rise of 3.2% to 5.10 million against a decline of 1.2% at 4.94 million in January.
On Wednesday, US President Donald Trump said his administration was considering maintaining long-term tariffs until China’s commitment was confirmed.