Source: Investing.com | Kedia Advisory | Commodities News 2023-05-11 03:46
Silver yesterday settled down by -0.99% at 76688 as optimism over the Federal Reserve cutting interest rates this year faded after the U.S. inflation report, triggering profit-taking among some investors. The headline inflation rate in the US unexpectedly declined to a 3-year low of 4.9% in April strengthening bets that the Federal Reserve may be over with the tightening cycle. The annual core consumer price inflation rate in the United States, which excludes volatile items such as food and energy, ticked down to 5.5% in April 2023, as expected, from 5.6% in the prior month, amid a downtick in the cost of rent.
On the other hand, the inflation rate in the UK was at 10.1% last month, staying above 10% for the 7th consecutive month and remaining close to the 40-year high of 11.1% reported in October. As a result, UK policymakers are widely expected to raise interest rates by 25 basis points to 4.5% on Thursday and the market forecasts rates to rise further to around 4.8% later this year. New York Fed President John Williams said inflation remains too high and the central bank will raise rates again if necessary, adding he doesn’t expect inflation to return to the Fed’s 2 per cent goal until the next two years.
Technically market is under long liquidation as the market has witnessed a drop in open interest by -7.99% to settle at 18563 while prices are down -768 rupees, now Silver is getting support at 75928 and below same could see a test of 75168 levels, and resistance is now likely to be seen at 77784, a move above could see prices testing 78880.