Silver Strategy - Rate Cuts Come to a Halt, Gold and Silver Plunge
Fundamental Analysis: Technical Analysis: Trade Recommendation: Support Level: 29.85; Resistance Level: 30.45. Trading involves certain risks, and these recommendations do not guarantee profit. Investors should evaluate their own capital and position management.
Yesterday, the gold market continued to be influenced by news of Trump’s election victory. According to the Associated Press, Republicans have gained a lead in the House of Representatives, setting up a "red wave" that will allow Trump’s tariff and tax cut plans to advance quickly, potentially driving U.S. inflation higher. This could bring an abrupt end to the Federal Reserve's easing cycle. With the market continually reacting to policy expectations, gold recorded its worst performance in over five months, and silver continued to decline as well.
On the hourly chart for silver, the price movement shows lower highs and lower lows, consistently reaching new lows. The downward-sloping moving averages indicate strong selling pressure. If the subsequent rebound fails to break the previous resistance level, the downtrend may continue. Therefore, short positions are advised.
Consider a short position at 30.45, with a stop loss above 30.78 and a target at 29.85.
