Silver Forecast: Sees Volatility As We Wait For The Fed -

Silver Forecast: Sees Volatility As We Wait For The Fed

Nov 02, 2023Jeremy ParkinsonFinance0

Despite the cautious atmosphere, precious metals have been on an impressive bullish streak recently.

Silver faced some challenges during Wednesday’s trading session, exhibiting a degree of erratic behavior. Currently, the market appears to be in the process of constructing a bullish flag pattern, indicating a period of consolidation.

Nevertheless, there were signs of a modest rebound in the later part of the early trading hours, suggesting that support levels remain intact.

It’s worth noting that later in the day, the Federal Reserve is scheduled to hold a meeting, which is likely to make many traders exercise caution.

Despite the cautious atmosphere, precious metals have been on an impressive bullish streak recently. It’s undeniable that the presence of geopolitical concerns has contributed to the attractiveness of precious metals in the market. However, it’s important to acknowledge that silver also possesses an industrial component, making it susceptible to more intricate market dynamics compared to some other commodities. This is a market that has a lot of external pressures on it, and I don’t think this changes anytime soon. Because of this, out of all of my commodity positions, silver is almost always one of the smallest. Expect VolatilityNevertheless, the prevailing trend in this market is the consistent presence of buyers willing to step in during price dips, and there are no immediate indications of this pattern changing. In the event of a selloff following the Federal Reserve’s announcement, it’s highly probable that traders will seize the opportunity to acquire silver at discounted prices. It’s worth keeping an eye on the US dollar’s performance, which is bound to experience fluctuations throughout the day, as well as the influence of interest rates on the silver market.In this uncertain environment, exercising caution is certainly prudent. This is especially true with a market like silver, which is extremely volatile in normal times. However, maintaining a cautiously optimistic outlook may be the most sensible approach. Breaking below the $22.50 level, or potentially even the $22 level, could potentially lead to a more challenging situation for silver. Conversely, if the market manages to breach the upper boundary of the bullish flag pattern, silver could embark on a journey towards the $24 level, followed closely by $25.33. Regardless of the direction, one thing is clear – expect a fair amount of volatility. Nevertheless, the prevailing sentiment still leans towards the upside. More By This Author:Crude Oil Forecast: Sees Support Just BelowGold Forecast: Has Buyers Waiting UnderneathEUR/USD Forecast: Looks Vulnerable to Pressures