Silver weakens on concerns on China’s economy

Fundamental News and Triggers

  • Concerns over China’s economy and shifting expectations surrounding the first rate drop of the Federal Reserve’s imminent easing cycle are producing some strong selling pressure in the silver market.
  • The news that China kept its monetary policy constant and did not loosen was interpreted as a negative for metals.
  • Gold and Silver are also seeing some profitbooking as per the CME FedWatch Tool, markets expect a 42% likelihood of a rate cut in March, compared to an 80% chance last week.

Technical Triggers

  • Gold prices are trading in the range of $2020 (~Rs 61700)  to $2035 (~Rs 62250). Prices need to give either side a breakout for a new direction.
  • Silver has touched important support of $22 (~Rs 70400), prices should consolidate here and then start rising again.

Support and Resistance

 

 

 

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