SOLID ECN LLC
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Silver quotes show a local downtrend, trading around 23.56.
The pressure on the instrument is still exerted by expectations of further tightening of monetary policy by the US Federal Reserve. Already during the May meeting, members of the Fed can raise the key interest rate by 50 basis points, as well as launch a quantitative tightening program. High interest rates have always been an obstacle to the growth of the precious metals market. The second negative factor is the US bond market, which has been at its highs of 2018. The high yields of Treasuries look much more attractive to investors than riskier assets such as gold and silver. Finally, a more long-term negative factor is the withdrawal of the London Metal Exchange (LME) from the global precious metals trading market. The day before, representatives of the trading platform announced the termination of all transactions with these assets until July 11 due to a drop in demand for contracts for gold and silver; however, experts attribute this event to recent reports of the withdrawal of contracts for nickel.
Over the past week, the demand for silver, according to the US Commodity Futures Trading Commission (CFTC), remained virtually unchanged: the number of net speculative positions in the precious metal amounted to 46.4K against 46.0K a week earlier.
The price is trading within the global ascending corridor, approaching the support line. Technical indicators have already reversed and issued a sell signal: the fast Alligator indicator EMAs crossed the signal line from above, and the histogram of the AO oscillator is forming descending bars in the sales area.
Support levels: 23, 21.4 | Resistance levels: 23.95, 25.8