Silver Price Forecast: $60 Support in Focus Ahead of Fed

Silver Technical Analysis

The silver market continues to drift somewhat sideways to downward as we wait for the Federal Reserve interest rate decision to come out on Wednesday. This could be a big driver of where things go, as interest-rate expectations can set up the overall behavior of the U.S. dollar, interest rates, and, of course, the influence on silver itself.

A Slow Drift Has Been the Case for a While

In this environment, that slow drift means that we are clearly waiting for some type of answers. But as interest rates in America continue to climb regardless, it might be worth noting that this is providing a little bit of downward pressure, even though we are somewhat consolidating at the moment. Think of it as “neutral with a slight downward pressure to it.”

The $60 level underneath, I believe, ends up being a pretty significant support level, right along with the $55 level. If the Federal Reserve sounds very hawkish during the press conference on Wednesday, that could, in fact, incite more downward pressure in the silver market.

The alternative scenario is that, for whatever reason, they choose to be a bit dovish or maybe not raise rates at all. That would more likely than not shock the market, but it would be a good turn of events for silver, with the $70 level above being a potential target as well as a major resistance barrier. This is an area that has been important for some time now, and should continue to attract attention.

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