Technical Analysis:
SILVER has given a MSS to the upside on 4H time frame. We might see a retracement to the downside and price might continue towards 29 and 29.3 price range.
Fundamentals:
Silver rose above $28.5 per ounce, rebounding further from 12-week lows as investors geared up for the latest US Federal Reserve monetary policy decision.
The Fed is widely expected to hold interest rates steady this week and set the stage for a rate cut in September.
Meanwhile, the Bank of Japan raised its policy rate to around 0.25% in an effort to normalize monetary settings, while markets remain divided on whether the Bank of England would already start cutting rates this week.
Silver also found support from safe-haven bids following the killing of a Hamas leader in Iran, with traders assessing its potential impact on the wider Middle East conflict.
Moreover, base metals got a boost after China’s leaders pledged to step up support measures and stabilize market confidence at a Politburo meeting this week.
However, data showed that manufacturing activity in top consumer China contracted at a slightly faster pace in July, while services sector growth slowed to an eight-month low.
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