Posted 10th June 2022

Silver Slides Following ECB Meeting to Wipe Off Recent Gains from Tentative Recovery

silver bullion ounce bar

It is no mystery that in the last few months escalating inflation has been one of the main topics on the markets.

Therefore, investors will pay close attention to the U.S. CPI, which will be released later today. This index is expected to post another increase of 0.5%, after the 0.6% gain of the previous month.

Next week we will have the FOMC meeting (Federal Open Market Committee), where the Federal Reserve is largely expected to raise the rate by 50 basis points, from 1% to 1.50%, while the ECB confirmed yesterday that it will raise rates in July for the first time since 2011.

Live Silver Price – $/oz

In this scenario silver is steady at $21.60-$21.70 per ounce, after losing 1.5% following the ECB meeting. This new decline below $22 has weakened the technical scenario, as silver has been unable so far to show strong signals of recovery and inversion.

It is worth noting that there are many support areas just below the current price (between $21.30 and $21.50) which could curb the bearish momentum seen in the last few weeks. Looking upwards, the first positive signal will arrive with the surpass of the resistance zone placed at $22.20-$22.30.

This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.