Silver Rallies Towards The $20.00 Level Despite Fed Rate Hike

(September 22,2022- Vladimir Zernov)

Key Insights

• Silver is up by almost 3% and looks ready to test the key resistance at the $20.00 level. 
• WTI oil remains under pressure despite escalation of geopolitical tensions. 
• Copper continues to get strong support in the $3.40 – $3.50 range. 

Silver Rallies After Fed Interest Rate Decision

Silver gained strong upside momentum as Fed Chair Jerome Powell started to speak at the press conference after the release of the FOMC statement.

The U.S. dollar tested new highs after the Fed increased the interest rate by 75 bps but lost momentum and pulled back. Treasury yields have pulled back as well. The yield of 2-year Treasuries, which made an attempt to settle above the 4.10% level, declined towards the 4.00% level.

Silver is trying to settle above the $19.70 level. In case this attempt is successful, it will move towards the next resistance, which is located at the recent highs at $20.00. A move above the $20.00 level will open the way to the test of the resistance at $20.30.

On the support side, a move below $19.70 will push silver towards the support at the 50 EMA at $19.50. In case silver declines below the 50 EMA, it will head towards the support level at the 20 EMA at $19.20. A successful test of this level will push silver towards the next support at $18.90.

Gold has also moved higher after an unsuccessful attempt to settle below $1655. Currently, gold is trying to settle above the $1685 level. Palladium is trading near the $2150 level, while platinum is stuck near $920.