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Silver jumps nearly 2% as the US dollar softens and Fed hike bets fade
Analysts at OCBC point to support near 55 and resistance at 61.2, with two way price swings likely unless Fed tightening expectations ease further.
Silver rose nearly 2%, outperforming gold’s roughly 1.2% gain, as a softer US dollar and reduced expectations for Fed hikes followed weak core US CPI, according to FXStreet citing OCBC strategists Sim Moh Siong and Christopher Wong.
OCBC said silver’s rebound reflects its higher sensitivity to changes in monetary conditions and investor risk appetite, and they expect near term trade to stay choppy unless Fed tightening expectations continue to ease in a more sustainable way.
The note highlights oil driven inflation risks as a limiter to conviction, suggesting silver is prone to larger two way swings rather than a clean recovery trend.
Technically, silver was last seen around 58.8, with support expected near 55, while resistance at 61.2, near the 21 day moving average, needs to be cleared for momentum to build.
Latest closeGold $4,058.20 ▲1.5%|Silver $59.08 ▲2.5%