Key points

• U.S. Stimulus package on the horizon
• Industrial demand for metals remains robust
• Trend indicators are pointing upwards

U.S. stimulus package remains on the horizon as investors believe that in today’s Federal Reserve Rate Decision, some positive news will be ushered out. On the political frontier the Senate Majority Leader has highlighted his intentions to push all the necessary buttons required to deliver a stimulus package.

In terms of the silver price, the precious metal is holding on to its gains close to the $26.00 handle. Today is likely going to one of the most volatile trading days for precious metals because of the Federal Reserve rate decision lined up during the U.S. session. The rate decision and the proceeding press conference are inclined to set precious metal tone for the rest of 2020.

If the Fed lays out a hawkish outlook about both the U.S. and global economy, precious metals might take a beating. This will see silver shedding off much of the gains it had accumulated over the past trading sessions. However, on the long term point of view, the Fed is not inclined to bring up interest rates anytime in the future. This means that precious metals will remain on the upward trajectory on a longer term platform.

Silver Daily Chart

After creating a triple bottom on the support line at the $22.24 region, Silver took off with a strong bullish engulfing candle. The engulfing candle succeeded in erasing a week of loses at the same time breaking above a descending red resistance line. If prices succeed in closing above the 100 MA and break the $26.00 resistance line, silver bulls might endeavour to enter the monthly ascending channel.

The major trend is still bullish as indicated by the 200 MA which is still climbing and currently at $21.00. A sudden change of direction cannot be ruled but the current long term market fundamentals are biased onto the upside for precious metals. A quick glimpse of the RSI might suggest that a bearish correction is almost on the horizon. Another bearish correction will likely aim to retest the $23.70 support region.

Trends

Moving Average	Simple	Exponential
60	24.07 BUY	24.13 BUY
100	25.11 NEUTRAL	23.68 BUY
200	20.96 BUY	22.05 BUY

Pivot Points (Hourly)

Name	S3	S2	S1	Pivot	R1	R2	R3
Gold	1860.71	1862.43	1865.41	1867.13	1870.11	1871.83	1874.81
Silver	24.90	25.00	25.16	25.25	25.41	25.51	25.67
Platinum	1048.96	1050.73	1054.26	1056.03	1059.56	1061.33	1064.86
Palladium	2314.84	2323.92	2331.84	2340.92	2348.84	2357.92	2365.84

Pivot Points (Daily)

Name	S3	S2	S1	Pivot	R1	R2	R3
Gold	1805.30	1816.90	1836.10	1847.70	1866.90	1878.50	1897.70
Silver	23.39	23.66	24.15	24.42	24.91	25.18	25.67
Platinum	981.34	995.42	1019.64	1033.72	1057.94	1072.02	1096.24
Palladium	2232.84	2268.17	2297.84	2333.17	2362.84	2398.17	2427.84