Therefore, the Fed decision remains key for gold and silver prices. If the Fed remains hawkish, it may put further pressure on gold and silver prices and limit a break above the key resistance zones.
What is Next?
Gold and silver remain supported as hopes for peace reduced inflation expectations and the prospects of another U.S. rate hike. Gold is testing the first resistance of $4,350, after the rebound from $4,000. A break above $4,400 will push the price to $4,500. A break above $4,500 will open the door for a rally to $5,000.
Silver is also showing an impressive recovery from the $60 buy zone. The spot silver price must break above $72 to keep going higher to $80. But the Fed decision is the main risk. A hawkish statement by Kevin Warsh could curb the rally and hold both metals in check as they approach resistance areas. But the final peace deal will likely keep buying pressure high and reduce expectations of further rate hikes, which may keep gold and silver prices strong.
Read More: Gold Bulls Defend $4,000 as PPI Inflation Risks Rise
