Fresnillo share price tumbled earlier on Monday, shedding some of last week’s gains. As of the time of writing, the stock was trading 2.30% lower at 942.8p. The FRES stock has gained more than 7% in price in the past week. Its total market capitalization currently stands at £7.11 billion.
Fresnillo Plc is a Mexican metals mining company incorporated in the United Kingdom. The company is the world’s largest silver ore producer and Mexico’s largest gold producer. The company’s headquarters are based in Mexico City.
Fresnillo Plc was among the poor performers in the European stocks market on Monday, dragging the FTSE 100 index. The silver price has been rallying for the past few weeks on hopes that the Federal Reserve might slow its pace of interest rate hike. Higher interest rates dim silver’s allure as an inflation hedge and increase the opportunity cost of holding the metal.
According to minutes released by the Federal Reserve earlier on Wednesday, the FOMC is committed to fighting inflation. As such, Fed officials expect higher interest rates to remain in place until more progress is made. The FOMC meeting minutes saw the Silver price slip taking the Fresnillo share price with it.
Fresnillo Share Price Outlook
The daily chart shows that the Fresnillo share price has been gradually rising in the past few weeks. It hit an intraday high of 962.4p earlier on Monday before pulling back. The FRES stock has remained above the 50-day and 200-day exponential moving averages (EMAs). Its Relative Strength Index (RSI) is at 60, pointing to an increase in buying power.
Therefore, the Fresnillo stock price is likely to continue climbing in the near term. If this happens, the bulls might retest the resistance at 1000p. On the other hand, a flip below the important level at 905p will invalidate this bullish view.