The silver market began the week at a crossroads with expert eyes fixed on the movements of the US dollar. Although the rare metals market is synonymous with volatility and noise, Tuesday saw silver stocks breaking above the 200-day EMA while various critical factors set in to affect local prices. Sitting at $24 level above and $22 level below, industry experts note that this variance level could incite a pressure wave of selling.
Rare metals await judgement from US Federal Reserve
On Monday’s trading session, however, the silver market experienced a small fallback as the 50-day EMA helped the market gravitate towards the $22.50 level. The market will be under constant observation to determine if it can hold a support level.
On the Multi Commodity Exchange (MCX), India, gold prices continue to fall; analysts suspect the Navaratri festival has caused this sudden drop, particularly in local Indian areas. As of Monday, gold prices on the MCX have fallen 0.22%, with an ounce of gold weighing in at $1917.10, while silver prices have fallen 0.43% to $22.66 despite seeing a continuous rise in the first two weeks of October.
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As the week progresses, all eyes will be fixed on the US Federal Reserve as the Federal Reserve Chair Jerome Powell prepares for his decisive speech on inflation rates and interest hikes. With the minor and main support levels of these rare metals at 20.66 and 19.90, respectively, there is room for potential decline; however, all hangs in the balance until the Fed releases inflation data.
