Silver hovers near 10-month low amid hawkish Fed – Where next for prices? [Video]
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Silver prices slumped to their lowest level since November 2020 as Fed policymakers cleared the way to reduce its $120 billion in monthly asset purchases "soon" and hinted interest rate hikes may follow more quickly than expected.
The slight hawkish tilt was signalled in a new policy statement and economic projections that showed nine of 18 Fed officials ready to raise interest rates next year in response to inflation that the central bank now expects to run at 4.2% this year, more than double its 2% target rate.
The Fed also expects a slowdown in the GDP growth, which combined with rapidly surging inflation, may lead to stagflation risk ahead.
Such a scenario would provide a supportive environment for precious metal prices in the medium and long term.
Currently, Silver prices are trading sideways in a very tight range, which ultimately indicates a big move is on the horizon. The only question now, is which way.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
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