Silver Price Outlook – Silver Rallies Ahead of FOMC Announcement

Silver Technical Analysis

Silver has rallied ahead of the FOMC interest rate decision and press conference during the day, showing a little bit of short covering. It’s possible that the market will start to consolidate in this area, or if Jerome Powell says something that really gets the market going much higher due to the fact that he may end up being dovish, we’ll just have to wait and see how that plays out. Keep in mind that silver isn’t quite gold, so we will have to pay close attention to how this unfolds.

I think the $50 level is your short-term ceiling. If we can get above there, that’s obviously a very bullish sign. In that environment, silver would likely continue the overall uptrend. If we cannot break above that level, then the reality is that silver will probably start testing the 50-day EMA. The 50-day EMA is near the $45.45 level, and breaking down below there opens up the possibility of a move down to the $42 level, followed by the $40 level.

Keep in mind that the silver market is more of an industrial and electric-vehicle-driven market, less of a precious metal. Although it tends to move in the same general direction as gold, it will underperform gold under most circumstances. That wasn’t the case recently, but if we start to see a situation where markets return to normalcy and begin to sell off, then I believe silver will probably lead the charge lower. So, keep that in mind as you get involved in the silver market.

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