Get Ready for Silver’s Potential Rise to Rs 93,400 with Strong Support at Rs 90,300 | Exciting Market News

Key Takeaways:

• Spot silver surged to a two-week high due to Fed rate cut bets and a rate cut by the Swiss National Bank.
• Weaker US data also boosted silver prices as rate cut probability rose.
• Weakness in the Indian Rupee contributed to the rise in silver prices on the MCX.
• The Swiss National Bank, Bank of England, and China’s Central Bank made monetary policy decisions.
• The US Dollar Index and US yields saw some upward movement.
• The market is expecting a 65% probability of a rate cut at the upcoming Fed meeting.

Silver Prices and Monetary Policy Decisions:

Spot silver reached a two-week high driven by the Swiss National Bank’s rate cut and weaker US data. The Indian Rupee’s weakness also contributed to the surge in silver prices on the MCX. Major central banks, including the Swiss National Bank, Bank of England, and China’s Central Bank, made key monetary policy decisions.

US Data and Market Movements:

The US Dollar Index and US yields saw some strengthening. Disappointing US data included high initial jobless claims, slow housing starts, and weaker business outlook. The market is currently pricing in a 65% probability of a rate cut at the upcoming Fed meeting.

Outlook and Future Predictions:

The market expects more than one rate cut this year despite the Federal Reserve’s projection of just one rate cut. The green energy transition’s slowing pace may limit silver’s upside, with possible resistance levels at $31.35 and support at $30.30. Buying the dips is preferred unless the Fed changes its stance or US data continues to disappoint.

FAQ:

1. What factors contributed to the surge in spot silver prices?

The Fed rate cut bets, a rate cut by the Swiss National Bank, weaker US data, and weakness in the Indian Rupee all contributed to the surge in spot silver prices.

2. How did the monetary policy decisions of major central banks impact the market?

The Swiss National Bank lowered borrowing costs, the Bank of England kept its rate unchanged, and China’s Central Bank maintained its benchmark rate. These decisions influenced market movements and silver prices.

3. What is the current market expectation regarding a rate cut at the upcoming Fed meeting?

The market is currently assigning a 65% probability to the event of a rate cut at the upcoming Fed meeting on September 18, according to the CME Group’s FedWatch Tool.