At the moment, silver is dancing around $57.50 per troy ounce. However, the coming weeks could bring positive changes, including shifting projections regarding the Federal Reserve’s monetary path and a weakening US dollar.
The Fed’s October 27–28 meeting is likely to be a key catalyst for the precious metal’s rally. Despite accelerating inflation, policymakers do not look ready for another interest rate hike. Borrowing costs are widely expected to remain unchanged at the upcoming gathering. If the US central bank confirms its cautious approach and reluctance to raise rates immediately, Treasury yields could decline, and investor interest in precious metals may only grow. Under these circumstances, silver could stage a rebound following its recent losses.
Another important factor to consider is the dynamics of the dollar index (DXY). After hitting a nearly 1.5-year peak, the greenback has started to correct slightly. A weaker USD is good news for silver, as it makes it cheaper for holders of other currencies. If the dollar continues to decline ahead of the Fed meeting, the precious metal could gain additional support.
On the technical side, last week saw a rebound in quotes from the $54.75 floor. The next upside target could be the $67.00 level.
The overall recommendation is to buy silver at the current price of $57.50, aiming for $67.00 within two weeks. To mitigate the risk of adverse market movements, place a Stop Loss order at $54.75.
This content is for informational purposes only and is not intended to be investing advice.
