šSilver gains over 3% and moves back above $30 mark
Precious metals are trading higher today – gold gains 1.3%, platinum adds 0.3%, palladium gains 2.3% and silver rallies over 3%. The move higher is somewhat puzzling, given that US dollar is holding firm and today’s central bank decisions have been mixed. On one hand, Swiss National Bank decided on another 25 basis point rate cut, but Bank of England and Norges Bank held rates unchanged. Moreover, Norges Bank hinted that rates in Norway may stay at current levels for the remainder of the year.
US housing market data released today turned out to be a big disappointment, showing unexpected declines in building permits and housing starts, and this could boost markets odds for quick Fed rate cuts. However, the aforementioned flat performance of the US dollar does not support this view as more dovish Fed pricing should put pressure on the greenback.
Gains on SILVER can be, however, driven by investment demand. The latest data on ETF holdings has shown a 0.6% increase in silver holdings yesterday. Gold holdings ticked 0.1% lower yesterday, while platinum and palladium ETF holdings remain virtually unchanged.
Taking a look at SILVER chart at H4 interval, we can see that the precious metal is enjoying strong gains today. Price broke above the $29.80 resistance zone marked with previous price reaction and 200-period moving average (purple line). Gains accelerated later on, and SILVER returned above the psychological $30 mark. Overall, SILVER is continuing rebound launched after a failed attempt at breaking below the lower limit of the Overbalance structure at $28.75.
Source: xStation5
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