Opportunity After the Fed in Silver?
Last week, I said that in silver per gram, giving 90 lira as support, there is a risk that it could fall to 54 if the ounce-based price breaks below 60 dollars. The reason for the decline is simple interest rates.
The U.S. central bank, the Fed, increased the rate in September. In the notes released yesterday, it also showed that it is open to another increase.
When rates rise, people want to put their money into interest-bearing instruments, but silver does not generate interest. As a result, demand for silver decreases in the short term, and the price goes down. On October 14, U.S. September inflation will be announced.
If prices rise less than expected, the likelihood of the Fed raising rates again decreases; rates ease and an upswing toward 101 begins. If the opposite happens, pressure increases and a pullback to 90 becomes inevitable. NOT INVESTMENT ADVICE. #SILVER #FED #INTEREST #GRAMSILVER https://t.co/ZPlab0rPLm
Last week, I said that in silver per gram, giving 90 lira as support, there is a risk that it could fall to 54 if the ounce-based price breaks below 60 dollars. The reason for the decline is simple interest rates.
The U.S. central bank, the Fed, increased the rate in September. In the notes released yesterday, it also showed that it is open to another increase.
When rates rise, people want to put their money into interest-bearing instruments, but silver does not generate interest. As a result, demand for silver decreases in the short term, and the price goes down. On October 14, U.S. September inflation will be announced.
If prices rise less than expected, the likelihood of the Fed raising rates again decreases; rates ease and an upswing toward 101 begins. If the opposite happens, pressure increases and a pullback to 90 becomes inevitable. NOT INVESTMENT ADVICE. #SILVER #FED #INTEREST #GRAMSILVER https://t.co/ZPlab0rPLm