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Commentary
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.