Yesterday, the dollar increased as risk aversion reigned as a result of mounting concerns about the health of regional U.S. banks and worry about the likelihood of an unprecedented U.S. default, which caused silver to settle down by 0.8% at 72733. At his most recent meeting in June, Jerome Powell, the chairman of the U.S. Federal Reserve, signaled that the Fed would maintain interest rates at their current level.
At a research conference hosted by his bank, Powell claimed that “the risks of doing too much or doing too little are becoming more balanced, and our policy adjusted to reflect that.” We haven’t decided to what extent additional policy firming will be warranted, Powell continued. Raphael Bostic, president of the Atlanta Fed, asserts that the U.S. Federal Reserve must continue to be “super strong” in its fight against inflation even if the unemployment rate rises later in the year.
With the unemployment rate at 3.4% right now, the Fed’s employment goal is “far beyond success,” but Bostic cautioned that if it begins to rise, public pressure on the organization will be “enormous.” In April, silver-related sales at the Perth Mint increased to their highest level since October of the previous year. On the other hand, silver sales climbed by 6.8% each month to 1,947,743 ounces.
Technically, the market is in long liquidation as evidenced by the market’s drop in open interest of -2.68% to 14301 as prices fell by -588 rupees. Currently, Silver is receiving support at 72399, and a move below that level could result in a test of 72066 levels. Meanwhile, resistance is now likely to be seen at 73223, and a move above could result in a test of 73714 levels.