The silver market continues to see a lot of noisy trading, as we are well below a previous support level, which is a big signal overall. That being said, a move could be showing up after the announcement by the Fed.
Silver
The silver market is a little bit squishy and soft here during the trading session on Wednesday as we wait for the FOMC meeting.
It is worth noting that the 10-year yield, and yields in general in the United States, have climbed a bit during the trading session in preparation for that FOMC—maybe not a decision, but a statement and press conference.
Top Regulated Brokers
The $55 level above continues to loom large.
I think that is an area that you will have to watch very closely. If we can break above there, it would be a good sign. But it is really not until we clear $57.50 that I start to change my attitude.
Ultimately, this is a market that will be very noisy. I still favor the downside in silver as things stand right now. A breakdown and a daily close below the low of Tuesday makes me believe that perhaps silver could drop all the way down to the $50 level. That would be a drop below the $52.90 region.
A rally at this point in time, like I said, would be a good sign, but we would need to see a little bit of sustainability. Longer term, I love silver. I think silver has got a very, pardon the pun, bright future ahead of it with the electrification of the world’s economy.
But as things stand right now, the financing-cost opportunity loss here holding metals is just too much. Real yields are pretty attractive in the United States, so most money managers are willing to hold paper. It just flat-out pays more.
Ready to trade our daily Forex forecast? Here’s a list of some of the Top Silver Trading Brokers to choose from.