Silver Seems Ready to Break Out Off Significant Support – Buying Opportunity Beckons
Silver declined nearly 4% last week and has plunged 9% since November 4, as the US dollar reasserted its dominance ahead of the December Federal Reserve meetings, which are expected to result in the first rate hike in a year. The markets have placed a more than 95% likelihood of a December liftoff, according to the 30-day Fed Fund futures prices. After the sharp decline to near $16.50 during the New York session on Friday, silver prices stabilised late in the session and opened around the $16.70 area in Asia on Monday. Silver seems to be attempting to form a price base around $16.50 per oz. RSI at 32 suggests silver is oversold in the short term. Trends in the dollar and fixed-income markets will continue to dominate short-term trading conditions with little in the way of major economic data releases due.