Silver Price Forecast: Fed Decision Puts $63 Support at Risk

Silver Technical Analysis

The silver market has fallen a bit during the early part of the trading session here on Monday. As interest rates in America continue to rise, you also have to keep in mind that there is a Federal Reserve interest rate decision on Wednesday. That will have a major influence on what happens next with non-yielding assets such as silver and gold. This will be a very important week.

That being said, in the short term, it looks like the sellers are probably going to continue to be a little bit aggressive, in the sense that interest rates continue to spike, and that does work against non-yielding assets such as silver.

Long-Term Demand Still Remains

Longer term, silver still has a good story to tell when it comes to the electrification of the economy and the fact that there isn’t enough silver coming out of the ground to overwhelm demand. With that being said, longer term, I still like the silver market, but in the short term, it is going to continue to react to these crazy interest-rate movements as traders try to price in the idea of energy inflation really taking hold.

With this, I am more bearish than bullish, but I recognize that we are at the bottom of a range that we have been in for a couple of weeks, so a bounce would not surprise me either. The market has been bouncing around between $63 and $68, with an eye on $70 above as a potential ceiling and $60 below as a potential floor in the market at the moment.

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