After the rally posted earlier this month, the silver price has slowed down, returning to the support zone of $19-19.20. Silver has shown a positive correlation with the stock markets and an inverse one with the greenback.
Indeed, the decline of silver is related, once again, to the strength of the U.S. Dollar and expectations for a further rate increase from the Federal Reserve.
From a technical point of view, after having reached a peak above the $21 mark on the 4th of October, silver has lost ground, and tested again the key level of $19-19.20, where the prices seem to have found solid support. Indeed, in the early trading this morning the precious metal rebounded to $19.30, showing buyers’ interest in silver.
A fall below the key level of $19 could open space for further decline, with potential targets of $18.3 and $17.9. However, a clear return of prices above $19.6 will offer a positive signal, giving fuel to the positive momentum once again.
Markets are now waiting for the inflation report which could further clarify the next steps of monetary policies that will be followed by the Federal Reserve.
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