Silver Gains After Fresh Data Showed Inflationary Pressures in the US

  • by THO
  • 2 weeks ago
  • news
  • 1


yesterday settled up by 2.03% at 65878 after fresh data showed inflationary pressures in the US continue to increase, which could mean the Fed will have to raise interest rates faster than expected. The BoJ cut its inflation expectations due to the impact of cellphone fee cuts and the effects of rebasing the price index and signalled a delay in stimulus withdrawal, a divergent path from other major central banks. Meanwhile, the new Prime Minister Fumio Kishida announced he will compile a stimulus package worth several tens of trillion yen by the end of next week. Most Fed members agree that economic outlook and policy direction will gain more clarity after the Fed finishes winding down its asset purchases, depending on the inflation environment and employment situation. 
 
U.S. consumer prices increased more than expected in October as the cost of gasoline and food surged, leading to the biggest annual gain since 1990, further signs that inflation could remain uncomfortably high well into next year amid snarled global supply chains. The consumer price index rose 0.9% last month after gaining 0.4% in September, the Labor Department said. In the 12 months through October, the CPI accelerated 6.2%. That was the largest year-on-year advance since November 1990 and followed a 5.4% jump in September.  
 
Technically market is under short covering as the market has witnessed a drop in open interest by -6.85% to settled at 8661 while prices up 1308 rupees, now Silver is getting support at 64492 and below same could see a test of 63106 levels, and resistance is now likely to be seen at 67022, a move above could see prices testing 68166.  

Trading Ideas:
# Silver trading range for the day is 63106-68166.
# Silver rose after fresh data showed inflationary pressures in the US continue to increase, which could mean the Fed will have to raise interest rates faster than expected.
# The annual inflation rate quickened to a three-decade high of 6.2% in October, bolstered by a 30% surge in energy prices.
# Data showed the US labor market continues to improve with initial weekly claims setting a fresh pre-pandemic low last week.
 



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