Silver price has dropped by 3.15% since early Wednesday as a reaction to the minutes of December’s FOMC meeting. Based on the minutes released on Wednesday, the US central bank’s officials expect the reduction of its balance sheet to commence after the start of rate hikes. Notably, the discussion on lowering the Fed’s bond holding in coming months was at the center of the meeting. The precious metal will also be reacting to the release of the US nonfarm payrolls and unemployment rate data scheduled for Friday.
Silver price prediction
Silver price has extended Wednesday’s losses as a reaction to the FOMC meeting minutes. Earlier in the previous session, it hit an intraday high of 23.25 before pulling back. At the time of writing, the precious metal was down by 0.86% at 22.59.
On a four-hour chart, it is trading below the 25 and 50-day exponential moving averages. It is also below the long-term 200-day EMA. Based on these technical indicators, silver price will likely remain under pressure in the short term.
It is currently hovering around the support zone of 22.59. A decline below this level may place the support at 22.31 or lower at 22.06. On the flip side, the resistance level along the 200-day EMA at 22.96 will be one to look out for.
With further bullish momentum, the bulls will be looking to retest the week’s high of 23.31. In the short term, the upper target of 23.50 may remain evasive even as prices hold steady above the psychological level of 22.00.