Silver Strategy - Powell Unhurried on Rate Cuts, Silver Loses Luster

Fundamental Analysis

The U.S. Producer Price Index (PPI) for October showed an unexpected rebound both month-on-month and year-on-year, raising concerns about increasing inflationary pressures on the production side. Federal Reserve officials have also adjusted their stances accordingly. Yesterday, Governor Kugler stated that if progress on inflation stalls, it might necessitate a pause in rate cuts. Chairman Powell also emphasized the strength of the U.S. economy and stated that the Fed has time to observe the impact of Trump-era policies on the economy, indicating no rush to cut rates. These factors have reduced market expectations for Fed rate cuts next year, which is unfavorable for gold and silver bulls. This extends the correction period for silver's previous gains.

Technical Analysis

On the 1-hour Bollinger Bands chart, silver rebounded after breaking the lower band but remains within a bearish structure. The channel currently appears to be moving sideways. When prices approach the upper band and begin to decline, short positions may be considered as a resistance level strategy.

Trading Suggestions

Short Entry: Sell silver lightly at 30.62.,Target 1: 29.88 and Target 2: 29.69 , Stop Loss: 31.15

Key Levels : Support: 29.69 Resistance: 31.12

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