Silver goes in line with other precious metals. Yesterday there was an attempt to break up the rectangle, as it was forecasted, but that try was unsuccessful. Silver continues to trade at the same level as it did the few days before the Fed and ECB meetings.
Data from a Reuters poll indicates that market participants have significantly raised their own gold price forecasts. However, the high level of interest rates is not conducive to a renewed rally in the precious metals market.
Other experts, including Thomas Price, have the opposite view, remaining bearish on the precious metal's prospects. According to them, the Fed will continue the cycle of raising interest rates in order to curb the inflation growth.
Silver is likely to hit $23 in 2023. The rise in value of this precious metal may be higher than the growth of gold prices due to a recovery in global industrial activity.
Silver is currently traded around $23, which indicates that there is no upside potential for the metal.
Thomas Price probably may be right for now, because the Fed really did announce plans to keep interest rates for the rest of the year. This situation could be a trigger for declines in precious metals, including silver.
The U.S. non-farm payrolls data is on the agenda today. Analysts forecast a slowdown in the number of employed people compared to the previous week. The data may also have a negative impact on silver if it is higher than expected.
As for the technical analysis, silver continues its sideways movement. As it was mentioned above, yesterday's attempt to break the rectangle failed. For now, the silver is traded under the downtrend that started a month ago. As for the daily timeframe’s RSI indicator, the silver is slightly below the neutral zone and that indicates some further decline is possible. In the hour timeframe the local oversold area has disappeared, so there is an opportunity for a further downside. On the background of the outstripping dynamics in the gold price decline, it is possible to assume that acceleration of the quotes decrease may happen soon as well. The downside target will be set at the level of $22.80, which could be used as a support for silver. Stop-loss can be set when the downtrend goes up from the active trading zone near the level of $24.20.
The silver price decline:
Take profit – 22,80
Stop-loss – 24,20
This content is for informational purposes only and is not intended to be investing advice.