ANALYSIS
NQ100 Finds Support from PPIApr 14
Strong Dollar Weight on Silver
Silver, one of the important members of the precious metals group, is struggling to find demand against the strong dollar. The fact that consumer inflation in the USA did not fall to the desired levels despite the downshift has greatly increased the possibility of a 75 basis point interest rate hike for the upcoming November meeting of the US Federal Reserve (FED). Here, the continuation of hawkish messages by leading FED officials also has a major effect. As a matter of fact, the US 10-year bond yields updated the peak of 14 years with 4.10%. Technically speaking, if the gray metal, which failed to break the upper boundary line of the descending channel and tended to retreat, can fall below the 18.00 level permanently, it may pull back to 17.65 support, which will be the low of about 2 months. However, the 18.75 – 19.00 range above will continue to be a strong resistance zone.
