prices recorded a gain of 0.75%, settling at 70837, driven by short-covering amid uncertainty regarding the Federal Reserve’s stance on interest rate cuts. The lack of a concrete timeline for rate adjustments in recent Fed speeches has created an air of uncertainty. Richmond Federal Reserve Bank President Thomas Barkin emphasized the need for sustained good inflation data before considering rate cuts, highlighting the central bank’s cautious approach. Lower Initial Jobless Claims for the week ending February 2 contributed to a US Dollar recovery.
The Department of Labor reported a figure of 218K, below expectations of 220K. However, the overall economic calendar in the United States has little to offer this week. Geopolitical tensions escalated as Israel’s Prime Minister Benjamin Netanyahu rejected a ceasefire proposal, expressing a downbeat market sentiment. Additionally, China, the second-largest global economy, reported a sharper-than-expected 0.8% year-on-year decline in its consumer price index for January, marking the fourth consecutive month of contraction and the most significant since 2009.
Technically, the silver market witnessed short-covering, with a 6.78% drop in open interest to settle at 30408. Despite a price increase of 526 rupees, Silver found support at 70160, and a breach below could lead to a test of 69490 levels. Resistance is likely at 71220, and a move above may push prices to test 71610. Traders are closely monitoring the Fed’s signals, economic indicators, and geopolitical developments influencing silver’s price dynamics.