Silver Price Forecast – Silver Stalls Ahead of FOMC

Silver Price Forecast Video for 22.03.23

Silver Markets Technical Analysis

Silver has been very quiet during the trading session on Tuesday, hanging around the $22.60 level. Keep in mind that the FOMC meeting is on Tuesday, and therefore a lot of people will be very cautious about putting money to work. This will be especially true in a market that is typically volatile to begin with, and therefore it’s likely that we will see a lot of it during the late hours on Wednesday. After all, the world is trying to figure out what the Federal Reserve is going to do, which of course has a major influence on the US dollar, interest rates, and economic growth in general.

This is where silver is quite a bit more difficult to trade than gold, because it is industrially driven beyond just its precious metal case. If industry is going to slow down and we are going to have issues, silver typically underperforms gold. As a precious metal, it does have a little bit of that effect, but really at this point in time there are so many moving pieces that is difficult to be deliberate with silver trading.

The 50-Day EMA sits right around the $22 level, so that could be a short-term support level, and therefore we need to pay close attention to it. Furthermore, we have the 200-Day EMA just below there, so it does offer a significant amount of support as well. Just above, we have the $23 level, which is an area that will cause a little bit of psychology to enter the market based upon the large, round, psychologically significant effect of it. After that, you could have the market racing towards a $24 level, where we would reenter that massive cluster of trading that we were in just a couple of months ago.

More likely than not, the most important thing you can do is keep your position size reasonable, due to the fact that the move will almost certainly be very volatile, and therefore it will shake a lot of traders out. By keeping your position size smaller than usual, you will be able to ride the volatility and get involved in the bigger move without damaging your account too much.

For a look at all of today’s economic events, check out our economic calendar.