Silver Price Holds As High Interest Rate Fears Fade
The price of silver has performed well in recent trading sessions as fears of high interest rates eased. The metal’s price rose to $ 28, which is slightly above this week’s low of $ 27.17. Other precious metals like gold and platinum also rebounded.
Money news: Money is up as investors remain bullish the Federal Reserve will not hike interest rates even as macroeconomic conditions improve. Recent data showed that the country’s inflation exceeded the Fed’s target of 2.0% while the producer price index rose by more than 6%.
The data also revealed that the country’s home prices hit their highest level since 2005. However, despite improving market conditions, the Fed insisted it would continue to support the economy through low interest rates and quantitative easing. Moreover, this despite the fact that other central banks like the Bank of Canada and the Reserve Bank of New Zealand have started to be hawkish. Silver prices are also rising due to ongoing deliberations on stimulus measures in the United States.
Silver Price Forecast
The four hour chart shows that the price of silver has seen a strong upward trend over the past few weeks. The metal formed an ascending channel shown in black. It is also supported by 25 and 15 day exponential moving averages (EMA). Also, it appears to be forming a cup and grip pattern as the Relative Strength Index (RSI) rose to 60.
Therefore, the path of least resistance for the metal is upwards. The pair will likely continue to rise as the bulls target the important resistance at $ 28.73. However, a drop below the support at $ 27.20 will invalidate this thesis.
Silver 4H card
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