Silver's outlook after the latest FOMC

The Federal Reserve's median forecast showed a "less worse" economic outlook, though silver's upside momentum has been limited by a rebound in U.S. dollar...

FED 6

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

More from Silver

Disclaimer: GAIN Capital UK Limited (trading as "Forex.com") is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, Forex.com does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by Forex.com or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although Forex.com is not specifically prevented from dealing before providing this material, Forex.com does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.