Silver Price Forecast – Silver Markets Pull Back Awaiting FOMC

Silver markets have pulled back a bit during the trading session on Tuesday to break down below the $26 level. By doing so, it looks as if we are heading back into the consolidation area underneath, as we await the FOMC announcement on Wednesday. Quite frankly, silver is going to move based upon what the US dollar does, and that of course can be affected by what the FOMC does. If they do something or at least hint at the idea of controlling yields, that could drive down the value of the dollar and helped lift silver.

SILVER Video 17.03.21

The $25 level underneath should be supportive, and I think that support extends all the way to the $24 level. Having said that, the market needs to see the FOMC at least mentioned yields, as if they fall then the precious metals aspect of silver could come into play. If we can break above the highs of the last couple of days, that would signal that the silver market is ready to go towards the $27 level, possibly even the $28 level. Silver of course does have the industrial play as well, which of course the stimulus has made a big difference in the attitude of the market as a result.

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I think we need to get past the question and answer phase of the FOMC meeting before we can make a more informed choice. Nonetheless, longer-term I do like the idea of silver going higher given enough time, and I believe that value hunters are certainly waiting for an opportunity to take advantage of “cheap silver.”

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