Fed could be decisive for an ounce of silver next week
From a technical analysis perspective, the underlying bullish outlook hangs on the support area at $ 21-22, but it is important to note that this outlook was already weakened a few months ago by the exit by the bottom of the ascending triangle and its weekly time unit bollinger bands.
Market reaction to the support area will be key. A rebound would maintain the underlying bullish outlook and pave the way for a return to the recent high at $ 25 in the near term, while a pullback below would set the stage for a much larger correction in Silver.
Jerome Powell's rhetoric and the FOMC's new dot plots next week will no doubt be very important for metals. Hawkish rhetoric would put pressure on the inflation outlook and support the dollar, which should put pressure on the prices of precious metals, including silver.
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