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Silver Breaking OutSilver prices are surging higher today with the futures market breaking out to its highest level since March 2022. Dovish comments from Fed’s Mester yesterday helped fuel a more than 6% rally. A rate cut in June is looking increasingly likely and a shift higher in market pricing for that date is helping drive demand for silver here. Today, traders will be keen to hear if Fed’s Powell echoes Mester’s comments and gives a signal for a likely June cut. If seen, this should fuel a fresh wave of USD weakness, creating further demand for silver.
Better China DataAlong with the shifting view in the US, silver prices are also being helped this week by better factory data out of China. With the Chinese manufacturing PMI now back in positive territory, traders are hopeful for a pickup in demand if industrial conditions continue to improve.
US Jobs DataLooking ahead this week, traders will be watching Friday’s US labour market data. If we see the headline NFP soften as expected, this should further support the view that a June rate-cut is likely, creating room for metals prices to advance higher as USD weakens.
Technical ViewsSilver
The rally in silver has seen the market breaking back above the 25.1094 level with price now testing above the 26.0974 range highs. With momentum studies bullish, the focus is on a continuation higher here with the 26.9863 level the next target for bulls ahead of a test of the bear trend line sitting above. More By This Author:US Dollar Index Commentary – Wednesday, April 3Crude Oil Commentary – Wednesday, April 3Ethereum Commentary – Wednesday, March 27
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