Silver reaches new high of $25.40 for the year
Slowdown of dollar index contributes to rise in silver prices
The International Monetary Fund expects unfavorable global economic growth rates in the medium term
The markets are waiting for inflation data to assess its impact on the Federal Reserve's interest rate decisions
Significant increase in silver price today
Silver prices witnessed a clear rise against the backdrop of the slowdown of the US dollar index amid market anticipation for US inflation data, as well as the release of the International Monetary Fund's expectations for the global economy. The International Monetary Fund expects the US economic growth to reach 1.6% this year, Eurozone economic growth to reach 0.8%, while the UK economy is expected to contract by about 0.3% during the same period. In its latest report on the prospects of the global economy, the International Monetary Fund stated that "it is currently not expected that the global economy will return in the medium term to the growth rates that prevailed before the pandemic."
On the other hand, the markets are eagerly awaiting several important economic data releases this week, including the US inflation data. The consumer price index data is expected to be released today, while the producer price index data is set to be released on Thursday. The markets are closely monitoring these data releases to gain a clearer view of the possibility of the US Federal Reserve raising interest rates during its upcoming meeting.
After the increases witnessed by the silver metal during yesterday's trading, the metal started today's trading with a noticeable rise, trading near the levels of $25.34, up by more than 1%.
Key levels and their impact on silver movements
Silver has managed to surpass the resistance level of $24.50 and continued its rise to record its highest peak for this year around $25.40. It is likely that the rise will continue to test the resistance level of $26.30. If this resistance is surpassed and prices remain above it, it may contribute to further rise in silver to test the resistance level of $28.25.
In case silver retreats from the current levels, it will find support around the level of $24.50. If this support level is broken, it may extend the decline to test the support level of $23.30.
Technical indicators suggest an extension of the rise in silver to test resistance levels, but caution is advised in case of a decline below the support level of $24.50, as it may change the upward scenario.