Silver Price Forecast: XAG/USD remains sideways below $23 despite robust US PPI growth

Silver price juggles in a narrow range below $23.00 despite strength in the US Dollar.
The US Dollar Index strengthens as US PPI grew at a healthy pace in July.
US five-year Consumer Inflation Expectations for August softened marginally to 2.9%

Sagar Dua FXStreet

Silver price (XAG/USD) continues to oscillate in a narrow range around $22.70 despite the United States Producer Price Index (PPI) growing at a higher pace than expected in July. The white metal looks vulnerable as the US Dollar jumps swiftly to near 102.80 despite hopes that the Federal Reserve (Fed) will keep interest rates steady in its September monetary policy.

S&P500 opened on a bearish note as a rise in US PPI could elevate the burden on households. Also, investors anticipating retaliation from Beijing as US President Joe Biden prohibits investments in some Chinese sensitive technologies.

US Bureau of Labor Statistics reported that monthly PPI grew at a healthy pace of 0.3% against expectations of 0.2%. The higher pace in the price elevation of goods and services at factory gates is due to a rebound in the cost of services at the fastest pace in nearly a year.

On Thursday, US inflation grew at a modest pace in July amid higher house rentals but was aligned with the Fed’s desired rate of 2%. Meanwhile, five-year Consumer Inflation Expectations for August softened marginally to 2.9% against the estimates and the former release of 3.0%.

Silver technical analysis

Silver price consolidates in a narrow range of 22.60-23.00 on an hourly scale. The white metal struggles to find a direction despite the strength of the US Dollar. The 100-period Exponential Moving Average (EMA) at $22.90 is consistently acting as a barricade for the Silver bulls.

A 40.00-60.00 range oscillation by the Relative Strength Index (RSI) indicates a volatility contraction.

Silver hourly chart

XAG/USD

Overview
Today last price	22.76
Today Daily Change	0.05
Today Daily Change %	0.22
Today daily open	22.71

Trends
Daily SMA20	24.15
Daily SMA50	23.68
Daily SMA100	24.06
Daily SMA200	23.24

Levels
Previous Daily High	23
Previous Daily Low	22.63
Previous Weekly High	24.84
Previous Weekly Low	23.23
Previous Monthly High	25.27
Previous Monthly Low	22.52
Daily Fibonacci 38.2%	22.86
Daily Fibonacci 61.8%	22.77
Daily Pivot Point S1	22.56
Daily Pivot Point S2	22.4
Daily Pivot Point S3	22.18
Daily Pivot Point R1	22.93
Daily Pivot Point R2	23.15
Daily Pivot Point R3	23.3

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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