12.12 Silver Afternoon Review: Why Did It Create a New Historical High?
Yesterday, during the early session of the U.S. market, silver refreshed its historical high overnight. At the same time, benefiting from the unexpectedly dovish signals released by the Federal Reserve, March silver futures rose by $1.446, reporting at $62.47 per ounce (typically, COMEX futures gold prices are more than ten dollars higher than spot gold).
In recent months, under the backdrop of the Federal Reserve's balance sheet reduction, the pressure on the $12.6 trillion money market has been continuously accumulating. After the FOMC meeting concluded and the press conference by Federal Reserve Chairman Powell ended in the afternoon, U.S. stocks rose in response, U.S. Treasury yields fell, the dollar index weakened, and the prices of gold and silver climbed simultaneously.
It is worth noting that ahead of this week's meeting, the market generally anticipated that although interest rate cuts had become a foregone conclusion, the Federal Reserve and Powell might release hawkish monetary policy rhetoric. Ultimately, the strong dovish measure of the Federal Reserve's bond purchases overshadowed all potentially hawkish remarks.
Most global stock markets were under pressure overnight, with U.S. stocks showing a low opening trend before the New York session.
Technical Analysis
March Silver Futures: The daily chart has successfully achieved a bullish flag pattern breakout. The next target for bulls is to stabilize the closing price above the key resistance of 70.00; the bearish target is to push the price below the support of 57.00.
Initial resistance is seen at the historical high of 63.25 for the overnight contracts, with further resistance targeting 64.00; initial support is seen at 61.00, with lower support referencing 60.00.