Silver outlook after the latest FOMC

Blue avatar for guest contributors
By :  ,  Financial Analyst

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.

Fed’s projections:

Source: U.S. Federal Reserve

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.

Source: Gain Capital, TradingView

Related tags: Commodities Silver Fed FOMC

Open an account today

Experience award-winning platforms with fast and secure execution.

Web Trader platform

Our sophisticated web-based platform is packed with features.
Economic Calendar