Silver pulls back from recent highs after key rate decisions

Precious metals retreated from fresh peaks as markets digest monetary policy decisions from major central banks. Today, both the BoE and the ECB delivered a 50 bps rate hike and reinforced more hikes would follow. The Fed however, continued to scale back the pace of rate increases and opted for a smaller 25bps. Gold failed to stay above $1950 and fell to major support $1920, while silver pulled away from high at $24.60 and dropped below $23.80 despite lower US Treasury yield with the US 10-year benchmark note rate down six bps, at 3.345%. On the other hand, the US dollar strengthened, bolstered by the Euro and Pound Sterling fall, which puts pressure on precious metals.

Silver has been moving sideways since mid-December 2022 and during today's session bulls again failed to break above the upper limit of the consolidation at $24.60. If current sentiment prevails, declines may deepen towards the major support zone between $23.00 -23.20, which coincides with 38.2% Fibonacci retracement of the upward move launched in March 2020. Break lower could led to sharper correction towards key support at $22.00. Source: xStation5

Gold is testing crucial support at $1920 which coincides with 23.6% Fibonacci retracement of the bullish wave started at the  beginning of the pandemic. If sellers manage to break lower, downward move may accelerate towards next major support at $1875, which is marked with previous price reactions. Source: xStation5