Silver surged as US inflation slowed more than markets expected

yesterday settled up by 1.16% at 75913 as US inflation slowed more than markets expected, raising hopes that the Federal Reserve may hasten its eventual dovish pivot. Consumer prices rose by 5% annually in March, below market expectations of a 5.2% increase and considerably below the 6% in the previous month. Along with evidence of a softening job market from last week, the result bolstered bets that the Federal Reserve will start cutting interest rates by the third quarter, lifting demand for non-interest-bearing precious metal investments. 

Additionally, a report from Ember showed that wind and solar energy represented a record-breaking 12% of electricity generation last year, underscoring strong demand for silver as an industrial input. The European Central Bank is set to keep raising interest rates in the coming months to combat inflation. Last week, ECB member Klaas Knot said it was unclear to him if a rate hike of 50 bps was necessary for May, or if a scale back to a lower 25 bps was a possibility, while chief economist Philip Lane retreated that rates would need to be raised again in May. Traders continued to bet on a 25bps rate hike for next month after the CPI report. 

Technically market is under short covering as the market has witnessed a drop in open interest by -7.64% to settle at 14020 while prices are up 873 rupees, now Silver is getting support at 75168 and below the same and could see a test of 74424 levels, and resistance is now likely to be seen at 76638, a move above could see prices testing 77364.