The price of silver experienced the hardest decline of the new year after the Fed meeting. The gray metal, which was traded at $27.80 before the meeting, fell to $25.80 in a short time in this process.
June 18, 2021, | AtoZ Markets – The month of June is going very badly for the prices of silver and gold. These precious metals, which started the new month at the highest levels of the year, fell sharply after the federal reserve meeting on Wednesday.
Investors perceived the meeting as a hawkish stance, as the Fed gave no indication that it would reduce asset purchases anytime soon, and precious metals returned to their May starting levels with this selling pressure.
Silver price under pressure
Vladimir Zernov, one of the precious metals market analysts, has published his current silver analysis. Pointing out the importance of the dollar index for the precious metal, which experienced a sharp decline after the Fed meeting, Zernov stated that exceeding the 92 level in the index would be very bad for precious metals. On the bond interest side, the experienced analyst stated that the decline has started, and said that if the interest rates continue to decrease, silver may gain momentum:
“Dollar Index managed to break past the 91.50 resistance level and is attempting to settle above the next resistance at 91.80. If this attempt is successful, the index will move towards the resistance at 92, which will be bearish for silver and gold. Silver, on the other hand, found itself under strong pressure due to the stronger dollar, higher treasury rates and higher gold/silver ratio. However, treasury rates have withdrawn from recent highs. Therefore, if interest rates continue to fall, silver may have a chance to gain upward momentum.”
$26.60 initial target
Dhwani Mehta, one of the experienced market analysts, published his silver analysis that he wrote during the day. Mehta pointed out that precious metals, which fell after the hawk FED, had the worst times of the new year. However, the experienced analyst, who mentioned that the increase in unemployment applications in the US reduced the pressure on precious metals, stated that the $26.60 level would be the first target for silver:
“Silver witnessed its steepest drop in five months on Thursday. On the last trading day of the week, it stopped the downtrend and tried to recover with the retreat of the dollar. The bulls remain cautious despite the market showing signs of recovery. The Relative Strength Index (RSI) rebounded from lower levels but remained below the 50 level. This shows that the downward trend is still intact. The $26.63 level is the first hurdle for the gray metal. The $27 level will be the next resistance point when this level is exceeded.”
Will the price of Gold surge again?
On the gold side, there was one of the hardest declines of recent times. Entering the new month above the $1,900 level, the yellow metal declined to $1,765 levels yesterday. However, the precious metal, which started the new day with a partial rise with the decline in bond interest rates, is trading at $1,793 at the time of writing.
Experts state that the rise in the US ten-year bond rate may not be permanent and the rise in the dollar may lose strength due to the possibility of other central banks making hard moves. It is emphasized that silver and gold may gain momentum in this process, while it is stated that gold prices may rise to the level of $1,816.
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