Silver on MCX settled down 0.37% at 37862 as U.S. Federal Reserve chairman Jerome Powell played down expectations of aggressive rate cut.
MCX Silver Support Key @ ₹ 37520 and below same could see a test of 37234 levels, and resistance key @ 37880, a move above could see prices testing 38100.
Powell said the Fed is studying whether the ongoing Sino-U.S. trade war and slowing economic growth warrants a rate cut. But he emphasized that politics won’t be a consideration in its decision. “The Fed is insulated from short-term political pressures – what is often referred to as our ‘independence,’” Powell added.
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Separately, St. Louis Fed President James Bullard told in an interview that he does not think the U.S. economy is bad enough to warrant a 50-basis-point cut in July. In the past, U.S. President Donald Trump has openly pressured Powell and his colleagues to loosen policy, saying lower rates would give an added boost to an economy.
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Prices earlier this week, buoyed by increased expectations of a rate cut after the Fed indicated at its latest meeting that it could cut interest rates, possibly as soon as next month, to offset the effects of slowing global growth as a result of trade tensions and subdued inflation.
