Silver Price Analysis: XAG/USD gets knocked back, slips back below $22 on US CPI plunge
- Spot Silver takes a knee after the US CPI inflation reading mangles investor risk appetite for Thursday.
- Risk appetite has soured and Silver's meager gains for Thursday have evaporated.
- Investors will be keeping an eye out for changes to the Fed's dot plot moving forward.
The XAG/USD slid below $21.80 on reaction to the US Consumer Price Index (CPI) inflation reading, kicking Silver prices back into the day's lows and sending bids down 2.2% from today's highs near $22.24.
US CPI inflation holds steady at 3.7% in September vs. 3.6% forecast
Investors are facing a fresh round of rate fears from the Federal Reserve (Fed), as still-high inflation that fails to wane as fast as investors hope for could see the US central bank get pushed into another rate hike before the end of 2023, and see interest rates hold "higher for longer" than markets previously estimated.
XAG/USD Technical Outlook
Silver spot tumbled from the $22.20 region into $21.80 on Thursday, and is heading into the 200-hour Simple Moving Average (SMA) near $21.50.
XAG/USD remains steeply off the year's highs of $26.14, and remains in the red from 2023's opening bids of $24.00. The last swing high on the daily candlesticks into $23.75 saw Silver shed the 200-day SMA and mark in a low of $20.68 for the year.
Thursday's bearish candle could see XAG/USD spark another bear run off of the descending trendline from late August's tops near $25.00.
XAG/USD Daily Chart
XAG/USD Technical Levels
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
