Silver Price Outlook – Silver Drifts Higher Ahead of FOMC

Silver Technical Analysis

The silver market initially rallied a bit during the early hours here on Wednesday, but has given back some of the gains. That being said, we have broken out and above the $60 level, and that, of course, is a large, round, psychologically significant figure. That being said, though, we also have to keep in mind that Wednesday is the FOMC interest rate decision and, perhaps more importantly, the press conference. This, of course, will have a major impact on where we go next. Therefore, you need to pay close attention to what’s about to happen.

Key Technical Levels and FOMC Impact

Short-term pullbacks I do think, offer buying opportunities. And it’s very likely that there will be one as traders are trying to do everything they can to avoid massive spikes in volatility, and of course, want to get on the right side of the move. That being said, I find it very difficult to look at this as a market that you should be shorting. But if we were to break down below the $57.50 level, then it could open up a drop down to the $55 level. If we turn around and break to the upside, the $62.50 level being broken opens up a move to $65.

Either way, this is a market that I do not have any interest in trying to get too aggressive in until after the announcement. And quite frankly, I would love to see a little bit of a pullback so that we can take advantage of cheap silver. Whether or not we get that remains to be seen. But the one thing I won’t do is short silver.

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