WAITING ON POWELL
Like most other assets this week, silver prices have seen subdued price action in the run-up to the September Fed meeting. Questions remain over whether or not Fed Chair Jerome Powell and the FOMC will deliver a 75-bps or a 100-bps rate hike, though both scenarios will likely catalyze a significant market reaction in their wake. If the Fed only delivers 75-bps, then there is a chance for a short-term recovery by silver prices; if the Fed delivers 100-bps, then silver prices could quickly slump. Either way, silver prices are clinging to a multi-month descending trendline ahead of the September Fed meeting, and the resolution around this key technical area will guide trading direction for the remainder of this week.
