Silver Price Forecast – Silver Tests Key EMAs as FOMC Forward Guidance Looms

Silver Technical Analysis

The gold market has rallied, and by extension, we’ve seen the silver market follow here on Wednesday, as both metals were in an oversold position. That makes sense because silver will be watching the interest rate situation in the United States very closely, as the United States has an interest rate decision during the day on Wednesday, which is expected to be a hike of 25 basis points. That is probably already baked into the market.

Forward Guidance as Key Driver for Next Move

The question now is going to be: What does the forward guidance look like? Will the Federal Reserve continue to tighten, or will it be a one-and-done situation? That will have a major influence on how both gold and silver react. Silver is typically more volatile, so I’m watching this market particularly closely.

We are hanging around the 50-day EMA, as well as the 200-day EMA, and have been consolidating for weeks now. Despite all of the noise out there, silver has been somewhat sideways. It’s been kind of interesting to watch, actually.

With the $60 level underneath being support and the $70 level above being resistance, we’re basically just hanging out in the middle right now. Longer term, I do like silver. There’s a major deficit in production, and demand is only going to increase over time. With that being said, I favor longer-term bullish positions.

But in the short term, I recognize we’re sitting right in the middle of a $10 range, which silver likes to trade in $10 ranges. Now we’re just going to have to wait to see what the reaction to the FOMC is.

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