- Silver price is trading sideways around $31.00 as investors await the US inflation report for June.
- Fed’s Powell noted that labor market strength appears to be waning.
- Silver price maintains breakout of descending channel.
Silver (XAG/USD) is trading sideways near $31.00 in the Asian session on Wednesday. The white metal is consolidating despite comments from Federal Reserve (Fed) Chairman Jerome Powell in his semi-annual testimony before Congress on Wednesday indicating that risks to the Fed’s dual mandate are balanced.
Fed’s Powell acknowledged that labor market conditions are not as tight as those experienced after the massive injection of liquidity in the pandemic era. On inflation, Powell said the Fed has made some progress on inflation in recent months and that more good data would strengthen the case for looser monetary policy, Reuters reported.
Powell has not yet given any timeline for rate cuts, however, but his comments have kept intact market expectations that the Fed will begin cutting interest rates as early as September.
Meanwhile, the US Dollar (USD) has remained under pressure ahead of the US (US) Consumer Price Index (CPI) report for June, due on Thursday. The Dollar Index (DXY), which tracks the value of the Greenback against six major currencies, is gaining ground above the near four-week low of 104.85. US 10-year Treasury bond yields are consolidating around 4.30%.
Technical analysis of silver
Silver price extends its rise near $31.00 after a breakout of the descending channel formation on the four-hour time frame. An upside breakout of the mentioned chart pattern results in a bullish reversal. The upward sloping 20-day exponential moving average (EMA) at $30.70 is showing an uptrend.
The 14-period Relative Strength Index (RSI) is moving into the bullish range of 60.00-80.00, indicating that momentum has shifted to the upside.
Silver four-hour chart
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.