The U.S. debt ceiling standoff and other economic uncertainty helped silver close up 0.49% at 77456 yesterday as markets prepared for inflation figures that could affect the Federal Reserve’s interest rate policy. There is currently an 88.0 percent possibility that the Federal Reserve will maintain interest rates at its next meeting in June, according to CME Group’s (NASDAQ: Fresh statistics on the data front revealed that China’s imports fell precipitously in April and its exports rose more slowly, supporting indications of weak domestic demand despite the removal of Covid-19 limits.
Investors left regional banking stocks as a handful of lenders sought outside funding and stoked concerns about a new wave of bank failures, prompting a new flight to safe assets. In addition to worries about financial instability, recent indications of a sluggish employment market led investors to wager on numerous rate cuts by the Fed this year.
While silver product sales at the Perth Mint increased to their highest level since October of last year, gold product sales decreased by more than 6% from the prior month.CME) FedWatch Tool. The president is scheduled to meet with the House speaker and other congressional leaders at the White House later today to address their impasse over the debt ceiling and expenditure reductions. This debt ceiling standoff is a cause for worry.
Technically, the market is experiencing new buying as open interest increased by 4.01% to settle at 20176 while prices increased by 377 rupees. Currently, silver is receiving support at 76908, and a move below that level could result in a test of 76361 levels. Resistance is now anticipated to be seen at 77760, and a move above could result in a test of 78065.
