Silver rallied to a one-month high at the end of last week after the Federal Reserve's latest policy statement led investors to push back bets on the timing of a rate hike, but charts suggest that a sustainable trend is unlikely to develop.
In its policy statement last week the U.S. central bank was more cautious with the language around the timing of a rate hike than markets expected, which sparked a bout of dollar selling. The greenback fell from recent highs against various currencies, while traders plowed into commodities with gold posting its best weekly rise since mid-January, according to Reuters. Silver, meanwhile, touched a one-month high of $16.89 an ounce on Friday.
Widely viewed as a proxy for gold, silver leads gold behavior on the charts by several days, providing a leading indicator.