Silver Price Prediction – Silver Slips Following Fed Meeting Minutes

Silver prices edged lower on Wednesday and continue to form a bear flag pattern. The move-in silver prices came despite a drop in the U.S. dollar following the minutes of the latest Federal Reserve meeting. U.S. Yields moved lower, as it appears that a tapering of the Fed’s bond purchase program will not a precursor to tightening.

Technical analysis

Silver prices moved lower on Wednesday after running into resistance near the March lows at 23.78. Prices continue to form a bear flag continuation pattern which is a pause that refreshes lower. Target support is seen near the August lows at 22.10. Short-term momentum has turned negative as the fast stochastic generated crossover sell signal.  Medium-term negative momentum shifted negatively as the MACD (moving average convergence divergence) histogram prints in negative territory with a downward sloping trajectory which points to lower prices.

Fed Meeting Minutes Discusses Tapering

Federal Reserve officials at their July gathering made plans to pull back the pace of their monthly bond purchases likely before the end of the year, meeting minutes released Wednesday indicated. However, the summary of the July 27-28 Federal Open Market Committee gathering indicated that the central bankers wanted to be clear that the reduction, or tapering, of assets, was not a precursor to an imminent rate hike.