silver
Weekly Silver Price Forecast: Fed’s Rate Decisions and Economic Signals Shape Market; Selling Ahead?
Arslan Butt•Saturday, March 23, 2024•1 min read
Silver’s price trajectory faces scrutiny amidst broader economic influences, notably the Federal Reserve’s rate decisions. Jerome Powell, alongside Fed officials, absorbed insights on Friday from various sectors about the ripple effects of interest rate hikes.
One poignant perspective came from Whitney Ferris-Hansen, a Colorado farmer, who highlighted the compounded challenges of higher interest rates and commodity price volatility on rural economies.
Since March 2022, the Fed’s counter-inflation measures have escalated the benchmark rate to a 5.25%-5.5% range, intensifying the landscape for investors in commodities like silver.
Events in the Week Ahead: The market anticipates pivotal data releases and Fed communications, poised to influence silver’s market sentiment. These include the German IFO Business Climate index and remarks from Fed Chair Powell, offering potential cues on economic health and monetary policy directions.
Silver Price Analysis
Silver closed the week at $24.67, registering a 2.02% decline. Positioned slightly below the pivot point of $24.82, resistance is forecasted up to $26.15. Failure to breach this could lead to a retest of support at $24.22, with a further drop potentially reaching $23.12.
The Relative Strength Index (RSI) stands at 56, indicating a neutral stance with a tilt towards bullish sentiment. However, the gap between the current market price and the 50-day EMA at $23.71 suggests latent market robustness.
Presently, the bearish momentum beneath $24.82 underscores market apprehension. Yet, a breakthrough above this level may catalyze a bullish reversal, leveraging economic signals and Fed policy outcomes to possibly rejuvenate silver’s valuation in a fluctuating market environment.
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ABOUT THE AUTHOR
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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.
His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.
His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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