Silver Launches Toward Major Technical Breakout

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Precious metals markets are on the move this week.

They got a boost following Wednesday’s Federal Reserve policy statement. Fed officials kept their benchmark interest rate near zero and vowed to continue injecting $120 billion per month into the bond market.

The central bank seemed unconcerned about bubble-like conditions in equity markets. Nothing seems likely to deter it from pursuing more stimulus for the foreseeable future.

The ultra-dovish Fed helped nudge the U.S. Dollar Index down. It broke below 90 on Thursday to record a new low for the year.

Dollar weakness energized gold and silver markets.

In fact, silver appears to be launching toward a major technical breakout. The white metal gained two dollars through Thursday’s close to clear $26 per ounce. More importantly, it cleared through a zone of resistance to hit a 12-week high.