Trading is muted ahead of today’s Fed rate meeting and silver prices remain trapped between last week’s low of $15.16 and this week’s high of $15.83.
Key U.S. data will likely be the Inflation Report and Industrial Production figures which are on deck today and may trigger volatility, potentially creating a break to the current silver price range of $15.16-$15.83.
If this is not enough, then the Fed rate meeting outcome at 18:00 GMT, or the following press conference at 18:30 GMT may well do the trick.
Per the Fed funds’ futures contract, there is only a 2% likelihood that the Fed will raise rates, while 93 out of 97 economists in a Bloomberg poll expect them to remain unchanged at 0.5%.
Instead traders will scrutinize the statement and the press conference for hints of an April or June rate hike. The Fed funds’ futures are giving a 25.1% likelihood of a rate hike in April, followed by a 53.6% probability in June.
If last week’s low of $15.16 holds as a support, then silver may try to recuperate the last 48 hours of losses and possibly reach the high of $15.83. On a successful slide below last week’s low of $15.16, prices may reach the March 3 low of $14.87 followed by the January 29 low of $14.63.
See the DailyFX Analysts’ 1Q forecasts for the Dollar, Euro, Pound, Equities and Gold
Silver Prices | FXCM: XAG/USD
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
