December Fed Rate Hike Expectations weigh on Silver


The broader bid in the U.S. dollar as markets factor in a more hawkish Fed chairperson and with the Fed on track to hike the Fed funds rate by 25 bp in December has all weighed on commodities this week. HotForex analysis team believes that December Fed Rate Hike Expectations weigh on Silver and Copper.

27 October, HotForex – Japanese stocks are heading for another weekly advance on a weaker yen and positive leads from the U.S. where equities rallied on earnings and increased hopes for Trump’s tax reform. Australian’s benchmark underperformed and headed south as the government lost its majority following a High Court ruling on the citizenship eligibility of lawmakers.

December Fed Rate Hike Expectations weigh on Silver

Gold broke below the key $1275 and ounce yesterday with s strong move to $1267 this morning. Silver and Copper too dipped to the downside and look vulnerable.

December Fed Rate Hike Expectations weigh on Silver

XAGUSD closed yesterday below the 20 DMA and the more significant 200 DMA for the fifth straight session. A short position was entered at 16.77 with a target below the October low at 16.49, a little over the 14 DATR.

RSI is 41 and falling and the Parabolic SAR remains negative, target 2 is the lower Bollinger band and latest Fractal low at 16.32.  A break of the 200 DMA at 17.17 will negate this move.  The H4 chart has resistance at 17.07 and is also weak with RSI at 31, a break of a recent Fractal low at our entry 16.77 and the Parabolic SAR turned negative too.

December Fed Rate Hike Expectations weigh on Silver

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