- Silver price remains near $28.00 as investors focus on US inflation data for August.
- Rising US Dollar and bond yields limit silver price upside.
- The Fed is widely anticipated to begin cutting interest rates this month.
Silver (XAG/USD) price is up above $28.00 in the European session on Monday. The white metal is trading in a tight range, with downside support near $27.70. The upside in silver price remains limited as the US Dollar (USD) and bond yields remain strong while traders reduce bets supporting the Federal Reserve (Fed) to begin the process of easing policy aggressively this month.
The Dollar Index (DXY), which tracks the value of the greenback against six major currencies, is up near 101.70. The yield on 10-year US Treasury bonds is up as high as 3.75%. Historically, higher yields on interest-bearing assets limit silver’s upside as they increase the opportunity cost of holding an investment in non-yielding assets such as silver.
The US dollar and bond yields strengthened following the release of US (US) Non-Farm Payrolls (NFP) data for August, which indicated that the current health of the labor market is not as bad as it appeared from official employment data for July.
Meanwhile, investors are focusing their attention on the US (US) Consumer Price Index (CPI) data for August, due out on Wednesday. The consumer inflation report is expected to show that both the monthly headline and core CPI, which excludes food and energy prices, rose steadily by 0.2%. The annual headline CPI is expected to have slowed sharply to 2.6% from July’s reading of 2.9%.
Technical analysis of Silver
Silver price is trading in a channel formation on a daily time frame, which is slightly tilted downwards. The asset is sharply recovering and trying to break above the 20-day exponential moving average (EMA), which is trading around $28.68.
The 14-day RSI is oscillating within the 40.00-60.00 range, suggesting consolidation ahead.
Silver daily 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.
