News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • Heads Up:🇹🇭 Balance of Trade (AUG) due at 03:30 GMT (15min) Expected: $0.97B Previous: $0.18B
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here:
  • Evergrande shares jump as much as 32%, with over 240 million shares traded -BBG
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here:
  • PBOC injects net 110b Yuan in open market operations -BBG
  • RT @BrendanFaganFx: Hang Seng, ASX 200 May See Relief After Fed. Evergrande Set for Restructuring? #Evergrande #HangSeng #FOMC Link: http…
  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:
  • Chinese estates' Evergrande loss assumes all shares sold -BBG #Evergrande
  • RT @FxWestwater: Australian Dollar Fights FOMC-Charged US Dollar After Upbeat PMI Data Link: $AUDUSD…
  • Heads Up:🇯🇵 Foreign Bond Investment (18/SEP) due at 23:50 GMT (15min)
Silver Prices Gain Momentum Following Hawkish FOMC Minutes

Silver Prices Gain Momentum Following Hawkish FOMC Minutes

Alejandro Zambrano, Market Analyst

Talking Points

  • Silver prices slipped below the April 25 low of $16.78 after the publication of far more hawkish than expected FOMC minutes.
  • The Fed may raise rates in June if economy improves.
  • The short-term trend will remain bearish below the intraday high of $17.15 formed on May 18.

Yesterday evening, silver prices slipped below the April 25 low of $16.78 after the publication of a more hawkish than expected FOMC minutes release. The expectations of a June Fed rate hike were near 4% at the start of the week but have now surged to 34% according to DailyFX Currency Strategist Ilya Spivak.

The main conclusions from the minutes are that most Fed members think that if the incoming data indicates second-quarter GDP will pick up, and additionally if the labor market conditions continue to be good coupled with inflation continuing to head towards the two percent target, it would be appropriate for the Fed to raise rates in June.

Concerning GDP, we already know that it may pick up, as the Atlanta Fed’s GDP now-cast model projects a rise of 2.5 % (seasonally adjusted annual rate). In regards to the other variables, it appears that the markets expect labor to remain strong and for inflation to rise, given the increased likelihood of a June rate hike.

Independently, whether the Fed raises rates or not, the minutes were hawkish enough to trigger a break to the $16.78- $17.56 range which has dominated over the last few weeks. Silver prices are now trading near the psychological support level of $16.50, followed by the April 18 high of $16.30.

A potentially short-term resistance level is the April 25 low of $16.78, which previously acted as a support but which may now turn into resistance. The short-term trend will remain bearish below the intraday high of $17.15 formed on May 18 and a few hours before the publication of the Fed minutes. The trend is bearish in the short-term, as prices have been creating lower lows and lower highs since May 16. The high preceding the $17.15 high is the May 17 high of $17.32.

Our forecasts for Q2 2016 are live on the site. Download them for free.

Silver Price | CFD: XAG/USD

Please add a description for the image.

Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano

The afternoon session provides updates on the Chicago Fed Nat Activity Index, Jobless Claims, the Philadelphia Fed Index and speeches by Fed members Fisher and Dudley. The speeches may attract the most attention, as both Fisher and Dudley are voters and could confirm or detract from the hawkish FOMC minutes published yesterday evening.

--- Written by Alejandro Zambrano, Market Analyst for

Contact and follow Alejandro on Twitter: @AlexFX00

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.