Silver dropped pressured by strength of dollar and runup in Treasury yields.

witnessed a notable decline of -0.97%, closing at 71,770. This drop was influenced by the strength of the U.S. dollar, driven further by stronger-than-expected U.S. service sector data, which raised concerns about persistent inflation. Boston Fed President Susan Collins’ warning about the potential need for more policy tightening added to uncertainty about the Federal Reserve’s future actions.

The initially climbed to 105.16 before retracing some gains, ultimately settling at 105.02, up 0.15%. In a surprising turn of events, the Labor Department reported an unexpected decrease in initial jobless claims, falling to 216,000, the lowest level since February. This marks the fourth consecutive week of declining jobless claims. This unexpected data, along with other factors, has led traders to speculate that the Federal Reserve may not raise rates further and could even consider rate cuts next year.

From a technical standpoint, fresh selling was observed, with open interest increasing by 8.62% and settling at 16,342. Silver prices declined by -702 rupees. Support for Silver is expected at 71,430, with the possibility of testing 71,095 if it falls below this level. Resistance may come into play at 72,240, and surpassing this level could lead to testing at 72,715.