- The price of Silver falls to around $22.00 awaiting inflation data from the United States.
- Fed Chairman Powell favored a new increase in interest rates.
- The US inflation report will show whether progress in easing inflation towards 2% has slowed.
The price of the Silver (XAG/USD) fell sharply to near $22.00 as Federal Reserve (Fed) Chairman Jerome Powell and his teammates leaned toward raising interest rates further to bring monetary policy to a sufficiently high stance. restrictive.
Jerome Powell commented last week that the central bank will not hesitate to raise interest rates further to ensure price stability is achieved. Meanwhile, the Fed’s monetary policymakers, Mary Daly and Thomas Barkin, were unsure about the possibility of raising interest rates.
Meanwhile, uncertainty regarding US inflation data for October has kept the price of Silver in suspense. According to consensus, the monthly and annual core Consumer Price Index (CPI) expands at a constant rate of 0.3% and 4.1%, respectively.
The Dollar consolidates while awaiting inflation data. A slowdown in inflation’s progress towards 2% would raise the Fed’s hawkish bets. The US Dollar Index (DXY) struggles to extend its uptrend above the immediate resistance of 106.00. S&P 500 futures added some losses in the European session, portraying a state of risk aversion in the markets. US 10-year Treasury yields rose to around 4.65%.
Silver technical analysis
Silver price resumes its bearish path after testing the breakout of the consolidation formed in a range of $22.37-$23.70 on a four-hour scale. Short-term demand for the white metal remains bearish as the asset has fallen below the 200 EMA, which is trading around $22.70.
The Relative Strength Index (RSI) (14) has moved towards the bearish range of 20.00-40.00, indicating that the bearish momentum has been activated.
Silver Four Hour Chart
-638354683799630881.png)
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
