- Silver price drops to near $22.00 ahead of US inflation data.
- Fed Powell leaned towards raising interest rates further.
- The US inflation report will showcase whether progress in inflation easing towards 2% has slowed.
Silver price (XAG/USD) fell sharply to near $22.00 as Federal Reserve (Fed) Chair Jerome Powell and his teammates leaned towards raising interest rates further to push the monetary policy to a sufficiently restrictive stance.
Jerome Powell commented last week that the central bank won’t hesitate to raise interest rates further to ensure the achievement of price stability. While Fed policymakers Mary Daly and Thomas Barkin remained unsure about raising interest rates.
Meanwhile, uncertainty ahead of the US inflation data for October has kept the Silver price on edge. As per the consensus, the monthly and annual core Consumer Price Index (CPI) is seen expanding at a steady pace of 0.3% and 4.1%, respectively.
The US Dollar consolidates ahead of the inflation data. A slowdown in progress in inflation declining towards 2% would elevate hawkish Fed bets. The US Dollar Index (DXY) struggles to extend upside above the immediate resistance of 106.00. S&P500 futures added some losses in the European session, portraying a risk-off market mood. 10-year US Treasury yields rose to near 4.65%.
Silver technical analysis
Silver price resumes its downside journey after testing the breakdown of the consolidation formed in a range of $22.37-23.70 on a four-hour scale. The near-term demand for the white metal remains downbeat as the asset has dropped below the 200-period Exponential Moving Average (EMA), which trades around $22.70.
The Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which indicates that the bearish momentum has been triggered.
Silver four-hour chart
|Today last price||22.08|
|Today Daily Change||-0.14|
|Today Daily Change %||-0.63|
|Today daily open||22.22|
|Previous Daily High||22.74|
|Previous Daily Low||22.19|
|Previous Weekly High||23.26|
|Previous Weekly Low||22.19|
|Previous Monthly High||23.7|
|Previous Monthly Low||20.68|
|Daily Fibonacci 38.2%||22.4|
|Daily Fibonacci 61.8%||22.53|
|Daily Pivot Point S1||22.02|
|Daily Pivot Point S2||21.83|
|Daily Pivot Point S3||21.47|
|Daily Pivot Point R1||22.57|
|Daily Pivot Point R2||22.93|
|Daily Pivot Point R3||23.12|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.