Silver Price Analysis – Silver Drops Ahead of Fed and Others

Silver Technical Analysis

The silver market tried to rally a bit during the early part of the session but has since fallen a bit to show signs of hesitation. Ultimately, this is a market that’s been bouncing around the $80 level, but it looks like a little bit of fear heading into the Federal Reserve statement and interest rate decision has gripped the market mildly. This isn’t expected to be a change, but the statement and press conference will have a lot of impact this time.

Silver Consolidation and Federal Reserve Impact

Traders are probably going to continue to see a lot of questions asked about the sustainability of the rally. Quite frankly, this is a market that had fallen apart quite drastically and now is consolidating, and that is probably necessary for the bullish momentum to pick back up.

The $70 level underneath should be thought of as significant support and I do think that it is probably only a matter of time before we do get a bounce. But we have to get through the United States, England, Japan, Switzerland, Canada, the ECB, all of those central banks in the next 36 hours or so and that of course is going to cause some issues with interest rates, currencies, and then by extension, precious metals.

I like buying the dip, I just think you probably need to be extraordinarily patient at this moment. The market, which I can see is still very much in the previous consolidation range. This range should continue to be important for traders, and will be watched closely for signs of trouble if we break.

If you’d like to know more about how to trade gold and silver, please visit our educational area.