Watch out for silver weakness if the Fed are hawkish next week [Video]
|Focus for precious metals silver and gold now sits firmly on the FOMC meeting next week. If the Fed surprises markets next week and signals earlier and faster tapering that will be expected to send US 10-year yields higher, USD higher and pressure silver to the downside. So, check out the weak seasonal pattern that silver has below in case the Fed are more hawkish next week.
Over the last 10 years, silver has fallen nine times between Sept 22 and Nov 30. The average fall has been 7.91% and the gain was in 2018 with a 1.31% rise. The largest fall was in 2016 with a large -18.05% loss.
Major Trade Risks: If the Fed push back the timescale for tapering next week and are more dovish that should support silver and invalidate this outlook. All eyes on the Fed!
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.