My Analysis on Silver Micro

Silver Micro on MCX 

Silver broke the June support, but could not close below the June month's low price supported by strong buy rally from Shanghai Gold Exchange.

Why did Silver break the support?

Strong Jobs data. 

Followed by, better than expected Retail Sales Data

Convincing investors and traders, the economy is not as bad as anticipated. 

The strong Producers Price Index due to rising crude oil prices

The effects is now seen in CPI data

Means the fight for inflation is not over yet. The Fed will act to suppress the inflation by rising Interest rate, which then makes Dollar stronger. 

This led the silver to break the support.

Then, Why did Silver rise?

As per the article posted on Friday on Kitco -

The overall message among global central banks is that interest rate hikes are coming to an end and that is bullish for gold,” said Edward Moya, senior market analyst at OANDA. "Gold might not be ready to break out, but there are risks that central banks break something, which continues to support the precious metal.

That being said, we saw a strong buying in Shanghai Gold Exchange.

One being the start of Mid-Autumn Festival.

Ray Jia, senior analyst at WGC China, said despite challenges, an improved outlook for China's economy could provide some support for local gold demand. Also, various jewelry fairs and industry events may spur both manufacturers' and retailers' replenishing demand. Furthermore, given the upcoming National Day holiday and Mid-Autumn Festival, retailers' inventory restocking is likely to continue.

While, The Dollar strength weakened the Silver and Gold price, The Chinese festival brought in the needed support to keep the Silver and Gold retain the price level. 

Will it continue to do so post U.S. Interest rate decision, is a question is something that we need to watch.

That's all for today.