Silver reacts to the reduction of risk in the market
Last week, we witnessed hawkish signals from many central banks. Some of them raised interest rates more aggressively than expected, and in the case of the Fed, we could hear confirmation of the intention to raise rates twice this year. In light of this tone, precious metals remained under pressure, though at this point, it is clear that the precious metal market has likely priced in most of these "negative information".
Despite the one-day coup in Russia, which ended even before the markets opened in the last week of June, the markets remain exceptionally calm. This allows for making up for losses in many markets. Yields in the US finally began to decline slightly, trying to break out of the narrow consolidation that formed in mid-June.
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Create account Try a demo Download mobile app Download mobile appSilver is up 1.5% today and is recording its highest levels since June 21. At the moment, only palladium is registering slightly higher increases in the precious metals market. Another important resistance level is around the 23 USD per ounce mark. It is worth noting that silver reacted when trading near to this important support level at 22.0 USD, where the lower limit of the upward trend channel and the 200-session average are located. However, it is also necessary to pay attention to the fact that seasonality suggests possible further moderate declines or consolidations at low levels approximately until mid-July. Later, seasonality indicates increases.
Source: xStation5
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