Silver Strategy - Positive Market Outlook on Economic Growth; Precious Metals Experience Sharp Decline
Fundamental Analysis: Technical Analysis: Trade Recommendation: Take a light short position at the resistance level of 30.95, targeting 30.25 with a stop loss at 31.40. Support Level: 30.25; Resistance Level: 30.95. The above content is for reference only, does not represent the platform's position, and encourages you to maintain your own strategies and implement proper risk control.
The market expects that after Trump's inauguration, he will introduce a series of policies favorable to American companies, while using tariffs to curb the economic growth of Europe and China, aiming to achieve a strong America. This has recently led to a strong performance in U.S. stock indices, boosting the appetite for risk assets and causing a significant drop in safe-haven precious metals. Additionally, these policies have strengthened the U.S. dollar, contributing to the continued weakness of precious metals. Furthermore, with the conclusion of the Federal Reserve's interest rate decision, the “quiet period” for Fed officials has ended, allowing them to express their views. If these statements lower market expectations for future Fed rate cuts or support a strong dollar, precious metals could weaken further.
On the one-hour silver chart, after a strong rebound, prices have returned to a downward trend. The short-term movement shows lower highs and lower lows, indicating a bearish pattern. If resistance fails to be broken, this suggests the bearish trend remains intact. It is advisable to take a bearish stance, considering a light short position at the resistance level of 30.95, with a target of 30.25 and a stop loss at 31.40.
