Silver Price Analysis: XAG/USD falls under $22.00 but remains within recent ranges ahead of this week’s US CPI

Silver fell below $22.00 on Tuesday but remained within recent ranges as traders eye upcoming US CPI data on Friday.
Further evidence of slowing US inflation coupled with growing fears about US growth add upside risks to precious metals.
Silver bulls are eyeing a break above $22.50 resistance and a push towards $23.00.

Joel Frank Independent Analyst

Spot silver (XAG/USD) slipped back below the $22.00 per troy ounce level in quiet trading conditions on Tuesday and was last trading lower by about 0.5% in the $21.90s but still within recent intra-day ranges. Just released US trade data showed the country’s deficit shrinking a little more than expected in April, and this didn’t impact broader market sentiment. Ahead, traders will be watching a speech from US Treasury Secretary Janet Yellen at 1400GMT, but the remainder of the session looks set to remain quiet.

Most XAG/USD traders likely expect the pair to remain stuck within recent $21.50-$22.50ish ranges ahead of this Friday’s US Consumer Price Inflation report, with the 21-Day Moving Average at $21.74 likely to offer some short-term support. Traders are on the lookout for fresh signs that US inflation (and perhaps also Fed hawkishness might have peaked) might have peaked, which could weigh on the US dollar and US yields in the short term.

Given the negative relationship precious metals have to yields and the buck, this could give silver a boost and any US CPI-inspired break above resistance at $22.50 could see silver extend upside towards $23.00 and the 50DMA just above it. A worsening US growth story further adds to the potential upside risks for precious metals, amid a potential increase in the bid for safe havens.

XAG/Usd

Overview
Today last price	21.91
Today Daily Change	-0.17
Today Daily Change %	-0.77
Today daily open	22.08

Trends
Daily SMA20	21.74
Daily SMA50	23.19
Daily SMA100	23.71
Daily SMA200	23.5

Levels
Previous Daily High	22.52
Previous Daily Low	21.9
Previous Weekly High	22.48
Previous Weekly Low	21.44
Previous Monthly High	23.28
Previous Monthly Low	20.46
Daily Fibonacci 38.2%	22.28
Daily Fibonacci 61.8%	22.13
Daily Pivot Point S1	21.81
Daily Pivot Point S2	21.55
Daily Pivot Point S3	21.2
Daily Pivot Point R1	22.43
Daily Pivot Point R2	22.78
Daily Pivot Point R3	23.05

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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