Buying silver ahead of the FOMC meeting!

20 March 2023 208
Buying silver ahead of the FOMC meeting!

The Federal Open Market Committee of the Federal Reserve System (FOMC) will finish its regular meeting on March 22 at 9:00 p.m. (Moscow time).

 

Research on the price movements of oil and gas and precious metals before the FOMC meetings has indicated the usefulness of the FOMC "drift" effect in its forecasting.

And it showed that oil (Brent, WTI), gas and metals (especially silver) are all predisposed to rise 24 hours before the Federal Open Market Committee meetings of the U.S. Federal Reserve.

 

Precious metals are of most interest in the current environment because of their growing status as safe haven assets and potential slowdown or even pause in the U.S. Federal Reserve's interest rate increases.

 

The focus will be on silver as the metal that showed the highest profitability according to the FOMC drift test results.

 

Currently, the metal is trading around 22.5 dollars per ounce.

 

 

Options for entering-exiting the market:

 

To buy silver on March 21 at 9 p.m. (Moscow time).

Closing the deal:

Take Profit 1 = 23, Take Profit 2 = 23.5, Take Profit 3 = 24.

* Or exit the market on March 22 at 8:59 p.m. (Moscow time).

* Or exit the market on March 23 at 4:59 a.m. (Moscow time).

Protective order Stop Loss can be set below the minimum of the previous trading day, that is March 20, or below the support level of 22 dollars.

This content is for informational purposes only and is not intended to be investing advice.

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