Silver market participants have been somewhat relaxed as the market has simply gone back and forth between the $27.50 level and the $28.50 level. At this point, the market is likely to continue the same behavior, due to the fact that the Federal Reserve meeting runs through the end of Wednesday, and therefore I think it is very difficult to imagine a scenario where silver makes a big move without getting an idea of what happens in the Federal Reserve meeting. The statement will be closely parsed, as it can give an idea as to what the Federal Reserve thinks about inflation.
SILVER Video 16.06.21
The 50 day EMA underneath continues offer support as well, so I do think that it is possible that traders will continue to see that as an area to pay attention to. To the upside, the $30 level is a massive resistance barrier, and I think given enough time we will more than likely try to reach above there, and if we can break above the $30 level and allows for the market to go looking towards the $50 level. That being said, it is a longer-term call for that type of break out, and it would also be based upon massive stimulus coming out of the Federal Reserve still.
All things been equal, I believe that the next 24 hours will be choppy and show the same type of behavior that we had seen over the last several weeks, as we do not have any reason to go forward or backward as we have no idea of where things are going to end up and confusion seems to reign.
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