Silver dropped after US GDP growth was revised sharply higher

yesterday settled up by 0.23% at 69341 as traders positioned for Federal Reserve Chair Jerome Powell’s speech and economic data that could offer clues on future interest rate hikes. Sales of new single-family houses in the US jumped 12.2% month-over-month to a seasonally adjusted annualised rate of 763K in May of 2023, the highest level since February last year, and compared to forecasts of 675K. 

Sales increased 17.6% to 40K in the Northeast, 17.4% to 175K in the West, 11.3% to 471K in the South and 4.1% to 77K in the Midwest. New orders for US manufactured durable goods jumped 1.7% month-over-month in May 2023, following an upwardly revised 1.2% rise in April and easily beating market expectations of a 1% decline. It marks a third straight month of rising durable goods orders, led by a 3.9% surge in transportation equipment, namely nondefense aircraft and parts (32.5%) and motor vehicles (2.2%). Investors await further hints on the future rate path and will closely monitor appearances from several Fed officials, including Chair Powel, further economic data and the Bank Stress Test results. Market participants are currently assigning a nearly 77% chance the Fed will deliver a 25bps increase in the Fed funds rate in July. 

Technically market is under short covering as the market has witnessed a drop in open interest by -30.64% to settle at 6185 while prices are up 156 rupees, now Silver is getting support at 68986 and below same could see a test of 68632 levels, and resistance is now likely to be seen at 69773, a move above could see prices testing 70206.