Silver is trading near $26.093 and holding in the range of 25.80-26.80 from the last several trading session. Strength in the dollar index is keeping precious metals under pressure. US dollar index has recovered from a recent low and sustaining near 92.66. However, a slump in global bond yields is likely to support precious metals prices.
Meanwhile, industrial metals and silver prices found support after the European Commission raised its Eurozone 2021 GDP forecast. Eurozone 2021 GDP estimates to be at 4.8% from a previous estimate of 4.3%. However, European Commission raised its Eurozone 2021 inflation estimate to 1.9% from 1.7%.
Fed minutes show that Federal Reserve officials talked tapering at their most recent meeting, but few seemed in a rush to get the process going. Some members indicated that the economic recovery was proceeding faster than expected and was being accompanied by an outsized rise in inflation, both making the case for taking the Fed’s foot off the policy pedal. Fed officials talked about reducing asset purchases but also expressed the need for patience. The meeting summary also reiterated the Fed’s view that while inflation has been rising faster than they expect, they see the current trend as transitory.
According to the CFTC Commitments of Traders report for the week ended June 29 net long for silver futures build up by 1606 contracts to 41477 for the week.
Speculative long position decreased by 1986 contracts, while shorts decreased by 3592 contracts.
Silver prices are consolidating near $25.80-$26.80 on mixed fundamentals, it is likely to find a strong support base near $25.80-$25.46 while immediate resistance is seen near $26.80-$27.40