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  • Silver is trading either side of the $25.00 on Wednesday, with the 200DMA at $24.88 offering support.
  • The minutes “should provide some indication about how committed the FOMC is to keeping interest rates at current lows”.

Spot silver prices (XAG/USD) have been trading either side of the $25.00 on Wednesday, with the 200-day moving average at $24.88 offering support to the price action. On the session, spot prices currently trade marginally lower, but conditions are rangebound/directionless amid a lack of direction in broader markets (the DXY is flat, 10-year yield is flat and the S&P 500 is very slightly higher). Short-term silver bulls will be eyeing a test of the weekly highs at $25.30 ahead of a move back to the 21-day moving average at $25.40.

Driving the day

As noted, markets are currently trading without direction, with the DXY flat in the 92.30s and US government bond markets subdued, with the 10-year yield currently flat at 1.65%. Thus, there has been very little impetus for precious metals markets to trade off of. The main event of the session, after which markets may be able to find some renewed direction, is the release of the minutes of the FOMC’s March meeting at 19:00BST.

“The release of the Fed Minutes on Wednesday should provide some indication about how committed the FOMC is to keeping interest rates at current lows” says Capital Economics. Other desks note that one key point of interest will be any reference the minutes make to the frequency of opinions expressed in favour of tightening policy earlier if the Fed’s current forecasts come into fruition. “If the minutes bring forward market expectations of interest rates hikes then the US dollar could strengthen, putting downward pressure on commodity prices” comments Capital Economics – silver is, of course, likely to be included in the commodity prices that would fall if the minutes came out more hawkishly than expected.