Hedging continues to cool! Silver plunges technically
During the trading day in Asia, silver T + D fell sharply by 2.43% to 4,336 yuan / kg. The opening time of this trading day was 4,414 yuan / kg.
Silver T + D rose 57 yuan / kg on Wednesday (January 8), an increase of 1.30%, to close at 4,444 yuan / kg, with the highest price being 4,540 yuan / kg, and the lowest price being 4,343 yuan / kg. At the same time, the international spot silver opened at $ 18.40 per ounce on the previous trading day. The lowest price was $ 18.01 per ounce, and the highest rose to $ 18.85 per ounce. It closed at $ 18.10 per ounce, down $ 0.31, or 1.58%.
Risk aversion in the market has cooled short-term after U.S. President Donald Trump issued a softened word on Iran's missile attack on a U.S. military base in Iraq on Wednesday (January 8). In addition, taking into account that there were no casualties in the United States and Iran made it clear that as long as the United States does not retaliate, no more strikes will be taken, and the market will reduce the possibility of military retaliation by the United States.
As the United States and Iran are on the brink of war, US President Trump delivered a television address to the American people on Wednesday (January 8) local time. In his speech, Trump stated that no Iranian military personnel were injured in the Iranian missile attack on the Iraqi base on January 8, and the base itself suffered "minimum" damage. Trump said the United States will immediately impose additional punitive economic sanctions on the Iranian regime, but the United States is willing to negotiate with Iran.
Trump said that less than a day after attacking U.S. military bases in Iraq, Iran seemed to be easing the situation.
Trump also said that the United States is willing to negotiate with Iran. "We must work together to reach an agreement with Iran to make the world a safer and more peaceful place," Trump said. He urged the rest of the world to break away from the Obama-era Iran nuclear deal and reach a new agreement.
It is necessary to continue to pay attention to the progress of the situation in the Middle East, and any unexpected news may trigger violent fluctuations in precious metals. On the other hand, US House Speaker Nancy Pelosi said Wednesday (January 8) local time that the House will vote on a resolution on Thursday that limits President Trump's power to take military action against Iran. Earlier Pelosi said it would postpone voting.
From a technical point of view, the daily chart shows that after the silver price surged, it fell, the MACD red kinetic energy column narrowed, and the KDJ stochastic indicator fell sharply, indicating that the USD retracement kinetic energy restarted, and then some callbacks may be launched. Looking at the 4-hour chart, the price of silver is also retreating, the MACD green momentum bar is expanding, and the KDJ stochastic indicator continues to extend lower, indicating that silver short-term material continues to extend its downward trend.