Silver Price Prediction in Light of FOMC Meeting Minutes

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The price of silver has fallen 3.15% since Wednesday morning in reaction to the minutes of the December FOMC meeting. Based on minutes released Wednesday, U.S. central bank officials expect the reduction in its balance sheet to begin after rate hikes begin. Notably, the discussion of the decline in Fed bond holdings in the coming months was central to the meeting. The precious metal will also react to the release of US Nonfarm Payrolls and Unemployment Rate data scheduled for Friday.

Silver Price Prediction

Silver prices extended Wednesday’s losses in reaction to the FOMC meeting minutes. Earlier in the previous session, it hit an intraday high of 23.25 before pulling back. At the time of this writing, the precious metal was down 0.86% at 22.59.

On a four-hour chart, it is trading below the 25- and 50-day exponential moving averages. It is also below the 200-day long-term EMA. Based on these technical indicators, the price of silver is likely to remain under pressure in the near term.

It is currently hovering around the 22.59 support zone. A drop below this level may place support at 22.31 or lower at 22.06. On the other hand, the resistance level along the 200-day EMA at 22.96 will be one to watch.

With further upside momentum, the bulls will look to retest the week’s high at 23.31. In the near term, the upper target of 23.50 may remain elusive even if prices hold above the psychological level of 22.00.

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