Silver prices (XAG/USD) have recovered, reaching near $31.00, following the release of the US Consumer Price Index (CPI) data.
Key Factors:
- US Inflation: The CPI data showed a faster-than-expected increase in inflation, which could lead to further Fed rate hikes.
- Fed Rate Expectations: While the Fed is expected to cut interest rates further, the pace of cuts may be slower than previously anticipated.
- Technical Analysis: The silver price has broken below a Double Top formation, suggesting a potential downward trend.
Technical Analysis:
- Support Levels: The 200-day EMA at $30.50 is a key support level for silver prices.
- Resistance Levels: The $31.00 level is a potential resistance level.
- RSI: The Relative Strength Index (RSI) has declined, indicating a bearish bias.
Overall Outlook:
Silver prices are likely to remain volatile, influenced by economic factors, market sentiment, and the Federal Reserve’s monetary policy. Traders should monitor technical indicators for signs of a trend reversal.
