Silver outlook after the latest FOMC
Silver's outlook after the latest FOMC
The Federal Reserve kept its Fed funds rate at 0.00%-0.25% unchanged, while officials' median forecast showed that interest rate would hold at current level through 2023. Even though the outcome was largely as expected, the Fed sees a smaller decline in GDP this year, better unemployment rate and inflation, compared with its previous projections made in June.
An improved outlook should benefit silver, as it can be used for industrial purpose, but at the same time a rebound in the U.S. dollar has limited the white metal's upside momentum.
From a technical point of view, spot silver keeps trading within a narrow range after a rally in March to August. Nevertheless, it maintains a bullish bias as it stays above the ascending 50-day moving average. The level at $25.30 may be considered as the nearest support, while the 1st and 2nd resistance are expected to be located at $28.90 and $30.00 respectively.
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