Neal Bhai Reports — Silver MCX Support at 41448, Target 42700–42986 —Silver traded in range amid heightened expectations for a U.S. rate hike later this year weighed.
Federal Reserve Vice Chair Stanley Fischer said on Monday the U.S. economy may face longer and deeper recessions in the future if interest rates remain stuck at current low levels, mapping out a world in which low growth hamstrings central banks from effective recession-fighting. The upbeat economic reports came after Wednesday’s minutes of the Fed’s September meeting showed several officials believed it would be appropriate to raise interest rates “relatively soon” if the economy continued to improve.
The U.S. central bank raised rates for the first time in almost a decade in December, but rates have remained on hold since then amid concerns over sluggish inflation. The Fed’s next meeting is in November, but a rate hike ahead of the presidential election is seen as unlikely. Investors currently price a 64% chance of a rate hike at the Fed’s December meeting; according to federal funds futures. The greenback strengthened after U.S. retail sales rose 0.6% in September, in line with expectations and after a revised 0.2% fall the previous month. In addition, the U.S. producer price index rose 0.3% in September, compared to expectations for an increase of 0.2%.