CFDs and Spread bets are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs and Spread bets with this provider. You should consider whether you understand how CFDs and Spread bets work and whether you can afford to take the high risk of losing your money.

Silver - Short Pre FED

Jul 27, 2021

Edit Page

Silver - Short Pre FED by KQMarkets on

Silver has consolidated below support at $25.2 and we feel can move lower if the FED suggests that they will raise rates and taper asset purchases earlier than expected by the market.
The market expects the FED to continue it's dovish stance due to renewed fears over the impact of covid on the global economy despite rising inflation .
The US inflation rate released on the 13th July was 5.4% YoY vs 4.9% forecast and the FED has indicated that it would likely to let inflation continue to rise instead of raising rates which would impact the impact recovery.
However, there is division amongst FED officials about when to start pulling back the monetary stimulus which would increase the likelihood of the FED raising rates putting downward pressure on Silver prices. Depending on the outcome of the FED meeting tomorrow and the resultant price action Silver could quickly drop towards support at $24 given it's volatile nature.

All the content is provided for general information only and trade signals should not be construed as any form of regulated advice. It does not take into consideration your personal circumstances, including your investment objectives, risk profile, tax status, knowledge and understanding or financial situation. Past performance is no guarantee of future results.