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Silver Price Drops to $29.60 Amid Mixed US Economic Data and CPI Report

Silver (XAG/USD) is currently trading at $29.619, down 0.20%. The 4-hour chart outlines key price levels, starting with a pivot point at $29.84. Immediate resistance levels are at $30.41, $31.05, and $31.75.

Silver Price Chart - Source: Tradingview

On the support side, immediate levels are at $28.90, $28.11, and $27.53.Technical indicators offer a nuanced picture. The Relative Strength Index (RSI) stands at 76, suggesting overbought conditions that may lead to a potential pullback.

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The 50-day Exponential Moving Average (EMA) is positioned at $28.20, with the current price maintaining a bullish stance above this average. The upward channel supports a buying trend; however, the pivot point at $29.84 poses significant resistance.

A bullish breakout above this level could propel silver towards $30.41 or even higher to $31.05.

Fundamental Analysis Impacting Silver Prices

Silver’s recent performance has been influenced by various US economic indicators. The Core CPI month-over-month (m/m) showed a 0.3% increase, aligning with market expectations but down from the previous 0.4%.

Similarly, the CPI m/m rose by 0.3%, also meeting expectations and reflecting a slowdown from the previous month’s 0.4%. On a yearly basis, CPI grew by 3.4%, matching forecasts but slightly lower than the previous 3.5%.

The Core Retail Sales m/m increased by 0.2%, consistent with expectations but significantly lower than the previous 0.9%. The broader Retail Sales m/m remained flat at 0.0%, underperforming the expected 0.4% rise and sharply down from the prior 0.6%.

Silver Price Chart - Source: Tradingview

The Empire State Manufacturing Index showed a decline to -15.6, worse than the expected -9.9 and previous -14.3. This negative sentiment in manufacturing could pressure the US Dollar (USD), potentially benefiting silver prices due to its inverse relationship with the USD.

Conclusion

Silver’s outlook remains bearish below the pivot point at $29.84. However, a break above this level could shift momentum towards a bullish trend, targeting immediate resistance at $30.41 and further levels at $31.05 and $31.75.

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ABOUT THE AUTHOR See More
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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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