Listen to the latest market mood for Silver.
The FOMC meet tonight and Jerome Powell is expected to confirm a dovish outlook for the Fed. This should weaken the USD and lift silver higher.
Most analysts expect no changes to the Fed’s policy and a likely repeat of the Fed’s last message. A dovish surprise would be any mention of extra stimulus. The price of silver has consolidated ahead of the FOMC meeting tonight and is currently putting in a false break of an inside bar on the daily chart. The conformation of this move will be if the Fed is dovish and that should lift silver higher. On top of this fundamental backdrop the seasonals are good for silver. Between Jan 27 and Feb 22 silver has gained a total of 16 times over the last 25 years on industrial demand. If the Fed are dovish this could be the perfect time to buy silver.
Trade Risks: The main risk to this trade is from a hawkish twist out of the FOMC with Jerome Powell talking about tapering bonds.