Silver Price Plunges Towards $62-$63 Amid Pre-Fed Jitters

Silver prices have been under pressure, falling towards the $62-$63 area as traders prepare for the Federal Reserve's meeting on Wednesday. The metal has already lost ground from its late-August peak above $70 and a technical pattern now suggests a deeper correction.

According to trader Boz, the breakdown of silver beneath the neckline of a head-and-shoulders formation creates the possibility of a drop towards approximately $55. However, he doesn't believe this target is inevitable and expects the current decline to be part of a conventional Elliott Wave C wave within the broader corrective structure.

The Fed's decision on Wednesday could determine how much further the current correction runs. A rate increase accompanied by a hawkish message could reinforce the bearish technical setup, while a surprise hold could give oversold silver an opportunity to reclaim its neckline and potentially invalidate the full head-and-shoulders target.