Silver Slips After Fed Cuts Interest Rates, How's That Possible?
Silver prices corrected after the Federal Reserve (The Fed) officially cut its benchmark interest rate. This surprised some market participants, as lower interest rates typically support higher precious metal prices.
The decline in silver was due to several fundamental factors. First, the market was believed to have anticipated the cut long before. The Fed's decision, which met expectations, instead triggered profit-taking at resistance levels after a long rally in recent weeks. Furthermore, Fed Chairman Jerome Powell's cautious tone dampened sentiment. Powell emphasized that this cut did not signal the beginning of a long cycle of interest rate cuts. This statement caused investors to revise expectations again, pushing bond yields up and the US dollar stronger. This condition puts pressure on the price of silver, which is priced in dollars. (mrv)
At the time this analysis was published, the price of silver was at $41,549
- Buy if the price moves to $41,649
- Sell if the price moves to $41,449
Resistance 2: $42,220
Resistance 1: $41,834
Support 1: $41,128
Support 2: $40,886
Disclaimer:
This article is for analytical purposes only and is not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
