- Silver price falls near $31.50 after posting a new two-week high around $32.20.
- Chinese officials proposed increasing bond issuance to boost infrastructure investment.
- Producer inflation in the US grew at a faster than expected pace in November.
The price of Silver (XAG/USD) gives up all its gains and falls near $31.50 in the North American session on Thursday. The white metal falls after posting a new two-week high around $32.20. The asset faces pressure following the conclusion of China’s two-day economic work conference, a high-level meeting that sets economic priorities for the coming year.
China’s top leaders did not provide specific details on the likely size of the stimulus package and the pace of monetary policy easing. However, officials said they will increase the issuance of special ultra-long Treasury bonds and special local government notes next year, which are important sources for infrastructure investment and other public spending, Bloomberg reported.
Investors are awaiting more details on the stimulus package to forecast the demand for Silver, given its application in various industries such as solar panels and mining, etc.
Meanwhile, warmer-than-expected United States (US) Producer Price Index (PPI) data for November has also weighed on the price of Silver. According to the IPP, annual producer headline and core inflation accelerated to 3% and 3.4%, respectively. The impact of the US PPI data appears to be negligible on the Federal Reserve’s (Fed) interest rate projections for the December 18 monetary policy meeting, but could raise expectations that the central bank will pause the policy easing cycle in January.
After the release of the US PPI data, the US Dollar Index (DXY) recovered intraday losses and rose near 106.80, which weighed on the price of Silver.
Silver technical analysis
Silver price pulls back after failing to revisit horizontal resistance drawn from the May 21 high of $32.50. The short-term attractiveness of the Silver price remains strong as long as it stays above the 20-day EMA, which is trading around $31.25.
The 14-day Relative Strength Index (RSI) is approaching 60.00. A bullish momentum would trigger a decisive break above it.
Looking down, the ascending trend line is around $29.50, which is drawn from the February 29 low of $22.30 on a daily time frame.
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.
