- The dollar falls and then rises after the US CPI figures.
- Volatile session in the financial markets, US stocks return to positive territory.
- XAG/USD cut its daily gains after failing to hold above $24.00.
The prices of the silver (XAG/USD) they spiked after the release of US inflation data, but then eased on the recovery of the dollar. XAG/USD It peaked at $24.17, the highest level in a week, and then fell back to the $23.60 area.. It is now around $23.75, a positive level for the day, but far from the highs.
The US Consumer Price Index fell 0.1% in December and the annual rate slowed to 6.5% from 7.1%, reaching the lowest level since October 2021. The figure was in line with expectations and helped anchor the expectations of a change in the Federal Reserve rate hike to increases of 25 basis points.
US yields fell after the report was released, boosting gold prices which also helped silver. After the opening bell on Wall Street, market sentiment deteriorated and yields rebounded, causing XAU/USD and XAG/USD to pull back.
Silver prices again were rejected above $24.00. A consolidation above that zone could open the doors to further gains. The next resistance is at $24.20followed by $24.55 (maximum of January 3).
Initial support emerges at the 20-day simple moving average (SMA), near $23.60. Below is an uptrend line around $23.35. A break below $23.30 could trigger a bearish acceleration, exposing the round level of $23.00.
Silver 4 hour chart
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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.
