Chart of the day - SILVER (11.06.2024)

8:41 AM 11 June 2024

Precious metals are taking a hit today - gold drops 0.3%, silver and palladium plunge 2% and platinum declines 1.2%. The move is somewhat puzzling - there was no news that could trigger pick-up in risk appetite, no notable strengthening in US dollar and US Treasury yields tick lower. This means that usual reasons that trigger pullbacks on precious metals are absent today. However, the drop may be driven by positioning ahead of tomorrow's FOMC policy announcement.

FOMC is unlikely to change the level of rates tomorrow, and such an outcome is fully priced-in by the markets. However, it will be a quarterly meeting, so a new set of economic projections will be released. Attention will be mostly on the rate forecast, the so-called dot-plot. Dot-plot released at March meeting showed a median expectation of 3 rates cuts this year. It is almost certain that those expectations will change, but the question is how much? Economists' expectations are split between one or two rate cuts. In any case, rate forecasts will get more hawkish and today's drop in precious metals could be a reflection of investors positioning their portfolios for this change.

Start investing today or test a free demo

Open real account TRY DEMO Download mobile app Download mobile app

Taking a look at SILVER chart at H4 interval, we can see that the price is moving lower today, and has even briefly traded below recent local lows ($29.10 per ounce). Price has also dropped below 200-period moving average (purple line), but it remains to be seen whether it remains below it by the end of the day as SILVER began to trim losses. A key near-term support level to watch should we see further declines can be found in the $28.75 per ounce area, where previous price reactions and the lower limit of the Overbalance structure can be found.

Source: xStation5

Share:
Back
Xtb logo

Join over 1 000 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol cc 2 March 2024
test_cookie cc 25 January 2024
adobe_unique_id cc 1 March 2025
__hssc cc 8 September 2022
SESSID cc 2 March 2024
__cf_bm cc 8 September 2022
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid cc 9 September 2022
_gat_UA-98728395-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_gcl_au cc 30 May 2024
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
__hstc cc 7 March 2023
__hssrc

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 7 March 2023

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language