Gold: $1,209.85 4.60
Silver: $14.40 0.09
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April 9th Mid-Week Market Update
Article By: Matt Zeman on April 09th, 2014

Silver prices are under some decent selling pressure here mid-week as stocks continue to try and stabilize following some recent losses. The silver market remains in a downtrend on the daily charts. This week is a bit slower in the economic data front, however, there are some reports worth noting.

Perhaps the most important release set for this week will be today’s FOMC meeting minutes. The Fed has kept the gold and silver markets somewhat on their toes, as many seem to feel that at times the central bank has given some conflicting signals concerning monetary policy and the plans of the Fed to continue its stimulus removal. All things being equal, it does seem that the Fed wants out of the QE business, and that they will likely hold the course on stimulus withdrawal.

Perhaps this notion is preventing a more worthwhile rally in silver and precious metals. On the other hand, it does also seem that rates could continue to stay low for some time to come-and this could potentially be considered bullish for silver prices. While nothing new of any real significance is expected from the Fed minutes today, investors will be paying close attention for any clues on the Fed’s assessment of the economy and their plans going forward.

Later this week, markets will get to digest the latest readings on weekly jobless claims, PPI and consumer sentiment. Investors will be watching the stock market closely for further signs of weakness, and additional weakness could potentially help support silver prices. The question now appears to be whether or not the market is entering a significant correction or if recent selling was simply profit taking.

Silver has not been able to get a lot going to the upside. After staging an upside trading range breakout a few weeks ago, silver has settled back into the previous range once again where it seems quite comfortable. In fact, given today’s price action, silver prices could be headed for a test of the bottom of the recent trading range in the $19 area.

While this support level may hold, this would be the fourth time silver has dipped down to that level in recent months and may be demonstrative of overall market weakness. Should the $19 level not hold, the bears could potentially drive silver prices into the $18.18 area. The bulls need to see silver break back above the $20.50 level in order to attract more fresh buying interest. Silver’s reaction to the FOMC minutes later this afternoon could help determine the near-term direction.