Silver prices suffered a fall as traders remained cautious before the formal signing of the US-China trade deal. Gold prices saw a slight increase of 0.04% at Rs. 39,084 per 10 grams. However, silver prices suffered a downfall of about 0.03% at Rs. 46,650 per kilogram.
According to SMC Global, the bullion trading market can face a range-bound movement. In other words, gold will face resistance at Rs. 39,300. However, silver may drop as low as Rs. 46,300 while finding resistance at Rs. 46,850.
The global equity market stunningly rose at a record high level in the past few days. This triggered the fall of the prices of precious metals along with silver.
Silver in The US Market
However, in the US market, silver showed some positive signs. Silver price rose 0.3% to $17.88 per ounce. The silver market rose up a little during the trading session on Tuesday thereby reaching the bottom of the uptrend line.
At this point in time, silver appears to be quite vulnerable in the market. You cannot expect the prices to pullback as of now. As the US dollar is expected to fall in the global market, prices of precious metals including silver are expected to suffer a similar fate.
Considering this situation, it is highly likely that the market needs to take some serious decisions very soon. If the silver prices go below $17.85 then this could send the market down towards the 50 days EMS below.