Silver Nears $31 on Fed Cut Speculation
Silver (XAU/USD) prices rose to near $31 per troy ounce on Thursday (16/1), hitting a one-month high as lower core inflation in the US supported speculation of further interest rate cuts from the Federal Reserve this year.
Core inflation unexpectedly slowed in December, while headline inflation remained in line with expectations. The prospect of lower US interest rates could stimulate demand for commodities by boosting economic growth and weakening the dollar. Despite the bullish momentum, silver prices remain below a 12-year high of $35 hit in October, due to concerns over uncertain demand from its manufacturing use.
Silver prices at the time of this writing were at $30.847/ Toz.
RECOMMENDATION:
- Buy if price moves to around $30,987
- Sell if price moves to around $30,707
Resistance Level 2: $31,267
Resistance Level 1: $31,127
Support Level 1: $30,567
Support Level 2: $30,427
DISCLAIMER
Note: This article is only an analysis and not a definitive reference. Pay attention to the development of fundamental and technical aspects in the transaction before making an investment decision.
Source: Newsmaker
