Silver price is up for the second straight day ahead of the important interest rate decision by the Federal Reserve. The white metal is trading at $24.72, which is still in the range where it was in the past few days. Other metals like gold and copper are also rising.
Why is the silver price rising? There are two main catalysts for the silver price today. First, investors are patiently waiting for the final interest rate decision by the Federal Reserve. This decision has several implications for silver.
First, a dovish Fed will lead to a weaker US dollar, which is in turn a positive factor for the price of silver. Indeed, the dollar index is at the lowest level in more than two years today. Second, if the Fed provides more stimulus, it would be a good thing for silver price because of its industrial use.
US stimulus: The price of silver is also rising as investors wait for the ongoing stimulus talks. In recent days, a team of bipartisan leaders have come up with two large packages. One will contain funds for vaccine distribution and business support while the smaller one will have funds for states and local governments. A stimulus would be a good thing for silver prices because it would lead to more demand.
Silver price technical forecast
What next for silver? On the daily chart, we see that the silver price has been making little progress recently. Still, the price is in the same range it has been in the past few weeks. It remains a few points above the 25-day and 15-day exponential moving averages.
Therefore, in the near term, we suspect that the price will remain in the current range. The key levels to watch will be the support and resistance levels at $21.72 and $26, respectively.
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Silver technical chart
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