Precious metals retreated from fresh peaks as markets digest monetary policy decisions from major central banks. Today, both the BoE and the ECB delivered a 50 bps rate hike and reinforced more hikes would follow. The Fed however, continued to scale back the pace of rate increases and opted for a smaller 25bps. Gold failed to stay above $1950 and fell to major support $1920, while silver pulled away from high at $24.60 and dropped below $23.80 despite lower US Treasury yield with the US 10-year benchmark note rate down six bps, at 3.345%. On the other hand, the US dollar strengthened, bolstered by the Euro and Pound Sterling fall, which puts pressure on precious metals.
Silver has been moving sideways since mid-December 2022 and during today's session bulls again failed to break above the upper limit of the consolidation at $24.60. If current sentiment prevails, declines may deepen towards the major support zone between $23.00 -23.20, which coincides with 38.2% Fibonacci retracement of the upward move launched in March 2020. Break lower could led to sharper correction towards key support at $22.00. Source: xStation5
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Gold is testing crucial support at $1920 which coincides with 23.6% Fibonacci retracement of the bullish wave started at the beginning of the pandemic. If sellers manage to break lower, downward move may accelerate towards next major support at $1875, which is marked with previous price reactions. Source: xStation5
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