Have Markets Found a Turning Point Ahead of the Elections?
Fed rate-hike bets topping 70% have pressured markets, including precious metals and U.S. indices, toward key support levels. Could these levels signal a turning point ahead of the U.S. midterm elections?
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Fed rate-hike bets topping 70% have pressured markets, including precious metals and U.S. indices, toward key support levels. Could these levels signal a turning point ahead of the U.S. midterm elections?
Razan Hilal, StoneX Media Market Analyst, breaks down the technical picture for silver and the Dow Jones as risk-off sentiment spreads across markets. Silver's daily RSI is testing oversold conditions last seen in 2023, with price approaching a nine-month support line that connects lower lows since February.
Rising December rate hike expectations on the CME FedWatch Tool, alongside elevated crude prices and political uncertainty around Israel's election and the U.S. midterms, are weighing on gold and silver. The Dow Jones Industrial Average is also pulling back, testing Fibonacci retracement levels of its October advance that separate a near-term buying setup from a broader bearish shift.
Deeper on the chart, the golden 61.8% Fibonacci retracement of silver's long-term advance aligns with a multi-decade trendline through the 1980s, 2011 and 2025 highs, forming a historic confluence zone.
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