Silver Price Forecast: XAG/USD drops below $23.00 ahead of US Headline CPI


  • Silver Price extends its losses due to recovery in the US Dollar (USD).
  • Upbeat US Treasury yields could provide support in undermining the Silver asset.
  • Elevated inflation figures could further reinforce the Fed’s hawkish tone, supporting the Greenback.

Silver price continues to lose ground on the second day, trading lower around $22.90 during the Asian session on Wednesday. The pair is experiencing downward pressure due to the improved US Dollar (USD).

Additionally, the upbeat US Treasury yields contributed to underpinning the strengthening of the Greenback ahead of the release of Consumer Price Index (CPI) data from the United States (US). The yield on the US 10-year bond improved to 4.28% by the press time, snapping the recent losses.

Any inflation aberration could further reinforce the hawkish sentiment following the likelihood of a 25 basis point (bps) interest rate hike by the US Federal Reserve (Fed) in either the November or December meetings.

Additionally, there's an expectation that the Fed will maintain higher interest rates over an extended period. These developments could potentially lead to a rise in the US bond yields, which may negatively impact the silver prices.

US CPI is expected to exhibit a 0.5% month-on-month improvement from the previous month's reading of 0.2%. Moreover, the Core CPI figure is anticipated to remain steady at 0.2%. These figures may provide valuable insights into inflation trends in the US economy and can have a significant impact on market sentiment and trading decisions about the Silver asset.

US Dollar Index (DXY), which assesses the performance of the US Dollar (USD) against a basket of the other major six currencies, trading higher around 104.70. DXY snaps the three-day losing streak.

Moreover, the robust Greenback is expected to maintain its resilience, primarily because it has the capacity to absorb the effects of higher interest rates. This strength can make the US Dollar (USD) more attractive to investors.

XAG/USD: additional important levels

Overview
Today last price 22.89
Today Daily Change -0.18
Today Daily Change % -0.78
Today daily open 23.07
 
Trends
Daily SMA20 23.61
Daily SMA50 23.74
Daily SMA100 23.8
Daily SMA200 23.48
 
Levels
Previous Daily High 23.18
Previous Daily Low 22.83
Previous Weekly High 24.3
Previous Weekly Low 22.83
Previous Monthly High 25.02
Previous Monthly Low 22.23
Daily Fibonacci 38.2% 22.97
Daily Fibonacci 61.8% 23.05
Daily Pivot Point S1 22.88
Daily Pivot Point S2 22.68
Daily Pivot Point S3 22.52
Daily Pivot Point R1 23.23
Daily Pivot Point R2 23.38
Daily Pivot Point R3 23.58

 

 

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