As things currently stand with the COMEX silver spot price:
Today's the day that the Federal Reserve will announce its decision on hiking the interest rates. Or not (you never know).
If the interest rate is hiked by the Fed, one can expect a "shock" to the precious metals market.
From Investing.com:
- 98% consensus for 25-bps hike means gold, silver to dip before Powell comments
- Fed chief’s outlook on rates will tell if another hike due before the end of 2023
- While another rate pause is seen as highly unlikely, Fed could still surprise
Whichever way the Fed leans today — a 25 basis point hike or another pause — there will be consequences for risk assets from the dollar’s response, with precious metals led by gold and silver possibly showing the most magnified reaction among commodities.
In one of the most unified consensus on what the Federal Reserve is likely to decide for July interest rates, the odds for a hike stood at 99.2% in the morning previous to the announcement.
Indeed, if the Fed decision, due at 14:00 Eastern (18:00 GMT), shows a quarter-point hike for this month, expect stock, energy and metals prices to take a brief hit before they quickly calm to focus on the “real event” of the day — Chair Jay Powell’s outlook on rates going forth.
To read more, go here.
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