Silver price (XAGUSD) is down for the second straight day as the unstoppable rally pauses ahead of the Fed rate decision. The metal is trading at $24.10, which is slightly below this week’s high of $26.20. Gold, on the other hand, is up by 0.20% while copper is barely moved below $3.
Analysts still optimistic about silver
Silver price is easing even as some analysts remain optimistic about its prospects. In a statement to CNBC yesterday, Reggie Brown, an analyst at GTS said that she believed that the metal has more room to run.
She said, “With the central banks around the world, with quantitative easing and printing of new currency to support some of the coronavirus rescue measures, I think we’re seeing weak currencies across the board.”
Her statement came on the same day that Goldman Sachs analysts upped their gold price target to $2,300.
With the Fed meeting today, analysts believe that members will sound a bit cautious since the US economy has started to weaken. For example, last week, data from the Labour Department showed that more Americans were filing for jobless benefits. This, coupled with the new stimulus package being debated in Washington are bullish factors for silver price.
At the same time, in a statement yesterday, US Mint said that demand for silver coins was rising in the country. As a result, it has been forced to limit the production, which is a bullish factor for silver.
Silver price technical forecast
The weekly chart shows that silver price has made a significant pullback from its highest point this week. The price is also significantly higher than the 50-day and 100-day exponential moving averages. Also, the RSI has jumped to the highest level since August 2019.
Therefore, the pullback appears to make sense as many longs take profit. Still, the upward trend is likely to continue as bulls target the next resistance at $26.73.
On the other hand, a drop below the psychologically-important level of $20 will invalidate this trend because it will send a signal that there are more sellers in the market.
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Silver Price forecast
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