Silver prices ended with gains tracking base metals prices despite gold dropped amid stronger dollar and rising expectations of a Fed rate hike by the end of the year keeping sentiment downbeat. Recent positive economic data and comments from central bank officials have bolstered expectations of a rate hike, with traders on Monday seeing a nearly 70 percent chance that the Fed would tighten credit in December.
The dollar was boosted after New York Fed President William Dudley said last week that the U.S. central bank will likely raise interest rates later this year if the economy remains on its current trajectory. San Francisco Fed President John Williams said that “this year would be good” for a rate hike. Growing expectations that Hillary Clinton will win the U.S. presidential election have also added to the view that a December rate hike is likely. Several Fed policymakers are due to speak early in the week, before the blackout period preceding the Nov. 2 meeting. But they would have to be unusually hawkish to swing expectations towards a rate increase hike next month, which comes just before the Presidential election. The outlook for euro zone inflation still hangs in the balance, European Central Bank rate setter Ardo Hansson said, adding it was too early to discuss a possible extension of the ECB’s money-printing program.
The ECB will decide on the future shape and duration of its 80-billion euros ($87 billion) monthly bond-buying scheme in December, when it publishes new inflation and growth forecasts. Technically now Silver is getting support at 41802 and below same could see a test of 41547 level, And resistance is now likely to be seen at 42441, a move above could see prices testing 42825.