Fundamental News and Triggers
Silver falls on the spillover impact from Cryptocurrencies sell-off
- Silver prices fell again, ending a short-lived two-day rebound as the recovery failed to sustain. Rising volatility across precious metals led to broad deleveraging, with silver underperforming as hopes of dip-buying faded quickly.
- The decline coincided with weakening US labour market data. January job cuts rose to 108.4K, while initial jobless claims climbed to 231K, strengthening expectations of Federal Reserve rate cuts later this year. Markets are increasingly pricing in the first rate cut around June.
- Meanwhile, easing geopolitical tensions reduced safe-haven demand for gold and silver. Confirmation of talks between Iranian and US officials in Oman has tempered risk sentiment, with investors closely tracking further developments in the negotiations.
Technical Triggers
- In the short term, gold prices are likely to remain weak and consolidate within the $4,550–$5,100 range (~ ₹140,000–₹160,000). A buy-on-dips and sell-on-rallies approach is advisable. A decisive break below $4,550 could open the door toward the next support near $4,200 (~ ₹130,000).
- Silver is also expected to trade weak and consolidate in the $70–$90 range (~ ₹225,000–₹285,000). Traders should follow a buy-on-dips, sell-on-rallies strategy. A breakdown below $70 may trigger further downside toward $64 (~ ₹200,000).
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