Hormuz Reopening Sparks Silver Price Rally
The Strait of Hormuz reopening has given silver prices a temporary boost, according to Mirae Asset Sharekhan. The metal is currently trading at $63.70 with a daily loss of 1.1 per cent. However, the price may not sustain due to low intrinsic fundamentals.
Traders are advised to buy the metal with a strict stop-loss below $62 for short-term trading, as resistance is seen at $65 followed by the $66.05-$66.40 zone. On the other hand, if the Hormuz reopening hope turns out to be false, silver prices may drop to $58.
The US and Iran are exploring a phased deal to open the Strait of Hormuz, which has eased oil prices. This has led to renewed optimism about the metal's prospects. However, the global bond market rout due to high oil prices has sent long-dated government bond yields soaring.