Silver pressured towards the bell as US stocks end in the green ahead of Fed
|- XAG/USD losing some ground in the consolidation phase ahead of the Fed.
- US and Chinese data failed to help the precious metal along while stocks continued to recover.
The prices of precious metals were pressured on Tuesday as the markets brace for the Federal Reserve interest rate decision and statement while US stocks managed to end in the green again.
At the time of writing, silver is trading at $27.1120 between a day's range of $27.0099 and $27.6276.
The price of the white metal was tagging along with gold prices despite the upbeat Chinese data and an increase in US factory output for a fourth straight month in August.
Fed to clear next hurdle for precious metals
Nevertheless, more profit-taking could well have been the catalyst for the moves following a prolonged sideways period as we head into the Fed's decision on Wednesday.
Analysts at TD Securities are optimistic that the Fed is cooking up the right recipe for precious metals markets.
The Fed has embarked on a new approach to inflation, voting to allow its pace to run above average for longer and the analysts expect that the FOMC will clear the second hurdle for precious metals.
Officials are set to send a dovish signal hrough the wording on QE, the extension of the dot plot through 2023, and the Chairman's press conference.
Over time, this will open up the door to an extension in the average maturity of Treasury purchases. In this context, we argue that the balance of risks is tilted towards a breakout higher.
Silver levels
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