Silver gains as US dollar drops after Fed’s Powell hints at June pause

yesterday settled up by 1.63% at 73321 as the dollar fell after Federal Reserve Chair Jerome Powell struck a moderately dovish stance, contrary to market expectations, saying that given how credit conditions have tightened, the U.S. central bank may not need to raise interest rates as much. Federal Reserve Chairman Jerome Powell said the path ahead for monetary policy has grown less certain after just over a year’s worth of aggressive rate rises aimed at countering inflation.

“The risks of doing too much or doing too little are becoming more balanced and our policy adjusted to reflect that,” Powell said at a research conference at his bank, adding, “We haven’t made any decisions about the extent to which additional policy firming will be appropriate.” The U.S. Federal Reserve will need to stay “super strong” in fighting inflation even if the unemployment rate starts to rise later in the year, Atlanta Fed president Raphael Bostic said. The current 3.4% jobless rate is “far beyond success” for the Fed’s employment mandate, but public pressure on the central bank will be “enormous” if it starts to rise, Bostic said. Perth Mint’s Silver product sales in April rose to their highest since October last year. Silver sales, on the other hand, rose 6.8% every month to 1,947,743 ounces.

Technically market is under fresh buying as the market has witnessed a gain in open interest by 1.14% to settle at 14695 while prices are up 1178 rupees, now Silver is getting support at 72455 and below the same and could see a test of 71590 levels, and resistance is now likely to be seen at 73921, a move above could see prices testing 74522.