Precious metals markets traded into an important technical juncture ahead of Wednesday\u2019s Federal Reserve policy announcement.<\/p>\n\n\n\n
Bank of America analysts stated that this week\u2019s meeting is \u201cone of the most critical events for the Fed in some time.\u201d<\/p>\n\n\n\n
The Fed faces mounting pressure to intervene in the bond market as yields continue to rise. It will likely reiterate its commitment to keeping its benchmark rate near zero and vow to continue buying at least $120 billion in bonds per month.<\/p>\n\n\n\n
Critics of Fed chairman Jerome Powell\u2019s easy-money stance are warning that monetary and fiscal policy are too loose.<\/p>\n\n\n\n
The federal government\u2019s recent $1.9 trillion spending package, combined with ongoing \u201cemergency\u201d liquidity injections by the Fed, risk fomenting speculative asset bubbles and sending inflation on a rapid upward trajectory.<\/p>\n\n\n\n
Rising fuel and food costs have economists concerned. Conveniently for Fed policymakers, however, their \u201ccore\u201d inflation indicator excludes those components.<\/p>\n\n\n\n
The traditional inflation hedges of gold and silver<\/a> haven\u2019t generated much upside confirmation so far in 2021 \u2013 at least not in the futures market where spot prices are determined. But bullion demand from investors who are concerned about inflation risk has been quite robust.<\/p>\n\n\n\n Will another round of intense physical buying follow the Fed\u2019s latest pronouncements on rates and the economy?<\/p>\n\n\n\n There is likely nothing on the Fed\u2019s boilerplate that would dissuade investors from buying precious metals. But spot price volatility in either direction is certainly possible in the near term.<\/p>\n\n\n\n Silver in particular appears to be winding up for a big move.<\/p>\n\n\n\n The silver chart shows prices currently being constrained by the 50-day moving average. The trading range is narrowing underneath it.<\/p>\n\n\n\n One of two outcomes appears to be imminent: Either a big breakout above the 50-day moving average OR a sharp selloff to re-test the $25\/oz level and perhaps lower-tier support.<\/p>\n\n\n\n Anyone who follows the silver market closely knows that prices can move dramatically in any direction at any time \u2013 regardless of fundamentals or the longer-term trend that may be in force.<\/p>\n\n\n\n Silver put in a major bottom one year ago as broader panic-induced market liquidation brought futures prices to as low as $12\/oz \u2013 and crude oil futures to an even more absurd (though brief) negative price structure.<\/p>\n\n\n\n That was a truly epic low \u2013 the sort the occurs perhaps once in a generation. As further confirmation of the historic nature of the 2020 bottom, silver became cheaper versus gold that any point in our lifetime \u2013 and has since significantly outperformed gold<\/a> on the rally that followed.<\/p>\n\n\n\n Silver has continued to show relative strength versus gold through the consolidation period that has occurred over the past few months. That should give precious metals bulls confidence that the major bull market off last year\u2019s lows remains intact.<\/p>\n\n\n\n Silver has ridden a broader run-up in commodities as prospects for post-lockdown economic growth improve. Industrial demand for the white metal also stands to pick up from the trend toward electrification. Silver is used in virtually all electronics and stands to benefit from accelerating growth in electric vehicles and solar panels in particular.<\/p>\n\n\n\n Silver\u2019s attributes as a monetary metal will also factor into its likely price rise over time as the value and status of the U.S. dollar erodes.<\/p>\n\n\n\n The world\u2019s reserve currency post-World War II is being abused like never before by its issuer. The federal budget deficit along with the Federal Reserve\u2019s balance sheet are spiking to levels that would have been unthinkable just a few years ago.<\/p>\n\n\n\n The Congressional Budget Office recently warned that the government\u2019s mountain of debt, largely financed at ultra-low interest rates, could become completely unmanageable when rates normalize.<\/p>\n\n\n\n The CBO estimates that over the next 30 years, Uncle Sam will have to come up with $61 trillion in interest \u2013 and that\u2019s assuming rates only move up modestly.<\/p>\n\n\n\n The CBO bluntly warned lawmakers that the current pace of debt expansion will \u201cincrease the risk of fiscal crisis \u2013 that is, a situation in which investors lose confidence in the U.S. government\u2019s ability to service and repay its debt, causing interest rates to increase abruptly, inflation to spiral upward.”<\/p>\n\n\n\n The end game, the CBO warns, could be the replacement of the dollar as the world\u2019s reserve currency.<\/p>\n\n\n\n Neither U.S. officials nor globalist bodies such as the International Monetary Fund want to see a disorderly unraveling of the world currency order. Plans for a transition to a global digital currency approved by the Fed and managed by the IMF are in the works.<\/p>\n\n\n\n Needless to say, central planners have no intention of reinstating sound money by backing their new digits with precious metal.<\/p>\n\n\n\n But gold and silver will continue to play the role they always have throughout the ages \u2013 serving as solid stores of value regardless of which fiat currencies come and go.<\/p>\n\n\n\n For now, the major currency against which precious metals are measured is the U.S. Federal Reserve note. The more it is debased, the higher and longer the bull markets in gold and silver can be expected to run.<\/p>\n\n\n\n Read more at the original source here<\/a>:<\/p>","protected":false},"excerpt":{"rendered":" 20 Mar 2021 By Stefan Gleason, Money Metals: Precious metals markets traded into an important technical juncture ahead of Wednesday\u2019s Federal Reserve policy announcement. Bank of America analysts stated that this week\u2019s meeting is \u201cone of the most critical events for the Fed in some time.\u201d The Fed faces mounting pressure to intervene in the… Read More »Silver Setting Up for a BIG Move Following Fed<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":986,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","_themeisle_gutenberg_block_has_review":false,"footnotes":""},"categories":[16],"tags":[],"class_list":["post-3904","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-silver"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/posts\/3904","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/comments?post=3904"}],"version-history":[{"count":1,"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/posts\/3904\/revisions"}],"predecessor-version":[{"id":3905,"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/posts\/3904\/revisions\/3905"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/media\/986"}],"wp:attachment":[{"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/media?parent=3904"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/categories?post=3904"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sellgoldmalaysia.com\/bm\/wp-json\/wp\/v2\/tags?post=3904"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Silver\u2019s Potential Breakout Level<\/em><\/h2>\n\n\n\n
![\"image-20210317164317-1\"\/](\"https:\/\/silverseek.com\/sites\/default\/files\/inline-images\/image-20210317164317-1.jpeg\")
<\/figure>\n\n\n\nThe Dollar\u2019s Road to Ruin<\/em><\/h2>\n\n\n\n