Silver markets initially fell during the day on Tuesday, but found support near the $16.25 level, and then shot through the $16.50 level. We turned around to fall below there again though, and I think that the volatility is probably going to continue until we get the FOMC Statement. The market looks as if it is trying to reach towards the $17 level above, but with the FOMC Statement coming out during the day, it’s likely that the volatility will pick up about the time of announcement, as Federal Reserve policy will come under scrutiny.
This of course has an influence on the US dollar, which then has a direct effect on precious metals. If the Federal Reserve sounds dovish, that should be very bullish for silver, and it should eventually go to the $17 level at the very least. Alternately, if the Federal Reserve sounds hawkish, it’s likely that this market will go down towards the $16 level underneath which should be massively supportive. I think that there is a lot of volatility just waiting to happen, but obviously between now and 2:00 PM EST, it is very likely that the market will be choppy in general, so I think that the overall play is probably to sit on the sidelines and wait for the reaction to what will be one of the biggest guidelines for precious metals this summer.
SILVER Video 26.7.17
This article was originally posted on FX Empire