Silver Prices Steady Ahead of FOMC Minutes

Silveris showing little movement on Wednesday. In the European session, the metal is trading at $17.14, up $0.01 or 0.11% on the day. The sole U.S. indicator on the calendar is crude oil inventories.

Will FOMC Minutes Shake up Silver?

With a light economic calendar on Wednesday, the markets will be focused on the Federal Reserve minutes, which will provide investors with details from the October 30 meeting. At that meeting, the Fed lowered the benchmark rate to 1.75%, which was the third successive cut in as many meetings.

At the same time, the October cut was considered hawkish, as policymakers sent a signal that they were taking a pause from trimming rates. The Fed said that the economy was in a good place, but also stated that uncertainties about the outlook remain. Will we get more mixed signals from the minutes? Any hints about future rate cuts could have a strong impact on silver prices, as precious metals such as gold and silver are sensitive to rate movement.

Silver Technical Analysis

Silver remains range-bound, as the metal is showing little appetite to stray from the 17.00 level. However, the lack of a trend for over a week could signal that silver is due for a breakout sometime soon. There is immediate resistance at 17.25 and this line remains vulnerable. This is closely followed by the 50-EMA, which is currently at 17.38. Above, we find resistance at 17.75.

On the downside, there is support at 16.50. Note that the 200-EMA is currently at the same level. Below, there is support at the round number of 16.00. The silver price forecast is for more of the same, as the trend is neutral.

XAG/USD 1-Day Chart