#silverSilver:
Silver holding below the near four-week high of 58200 hit September 12 as hotter-than-expected inflation in the US resulted in overdoing inflation fight by FED which announced a hike rates by 75BPS and signaled further increases in the coming months. The Hawkish statement from Fed officials indicated their intention to keep raising rates until the funds level hits a “terminal rate,” or end point, of 4.6% in 2023. Moreover, they see GDP growth slowing to 0.2% for 2022, then rising slightly in the following years to a longer-term rate of just 1.8%. Analyst believe, Fed rate hike could add $2.1 trillion to deficit
Concerns over the hawkish stance prompted market to believe ression in the global markets likely as a result the white metal is not holding on to its gains.
In Europe, the ECB signaled it will continue to raise interest rates after following the 75bps hike in its September meeting. Bank of France head Villeroy stated that borrowing costs in the bloc could reach a neutral level by the end of the year, as the policymakers move to curb inflation from current historically high levels.
Technically, Silver has a strong support at 54500 sustaining above 56600 will confirm the falling channel breakout that will make silver to retest 20DMA at 58200
