Silver rises as softer US inflation weighs on US Dollar

Silver gains around 1.7% and trades near $58.80 per ounce.
US Core PCE inflation rises only 0.1% MoM, below the 0.2% market forecast.
Slower US economic growth and broad US Dollar weakness support demand for precious metals.

Agustin Wazne FXStreet

Silver prices advance toward $58.80 per ounce on Thursday, gaining around 1.7% as softer United States inflation data and weaker-than-expected economic growth place pressure on the US Dollar.

The US Core Personal Consumption Expenditures Price Index rose 0.1% MoM in June, below the 0.2% market forecast and slowing from the previous 0.3% increase. On an annual basis, underlying inflation eased to 3.3% from 3.4%.

Headline PCE declined 0.1% on the month, following a 0.5% increase previously, while the annual rate slowed to 3.7% from 4.1%. The softer inflation readings reinforced expectations that the Federal Reserve (Fed) could adopt a less restrictive monetary policy stance if price pressure continues to moderate.

US economic growth also disappointed. Gross Domestic Product (GDP) expanded at an annualized rate of 1.5% in the second quarter, below expectations of 2.1%. However, the GDP Price Index surged 6.3%, well above the 3.6% forecast, indicating that some inflationary pressure remains elevated.

Short-term technical analysis:

On the 4-hour chart, XAG/USD trades at $58.76, holding a modest bullish bias as it stays above both the 100-period Simple Moving Average (SMA) at $58.10 and the 20-period SMA at $57.76. The pair has also reclaimed nearby horizontal support at $58.66, while the Relative Strength Index (RSI) around 57 hints at improving but not overstretched bullish momentum.

On the downside, initial support is seen at $58.66, followed by $58.53, before the 100-period SMA at $58.10 and the 20-period SMA at $57.76 underpin the broader structure. On the topside, immediate resistance aligns at $58.94, with a subsequent barrier at $59.26; a sustained break above these caps would open the way for a deeper extension of the current recovery phase.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Author

Agustin Wazne

FXStreet

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

GBP/USD advaces beyond 1.3450 after BoE decision, US Q2 GDP

GBP/USD gains positive momentum on Thursday, surpassing 1.3450 and trading at fresh multi-week highs. The Bank of England decided to maintain the benchmark rate unchanged at 3.75%. The MPC voted 6-3 to keep rates on hold, with the 3 dissenters favoring a rate hike. US Q2 GDP missing expectations helped the pair advance, while renewed US Dollar weakness across the FX board pushed the pair further up ahead of the monthly close.

EUR/USD confortable around 1.1530, highest in six weeks

The EUR/USD pair trades around 1.1530 in the American session on Thursday, reaching fresh six-week highs. The US Dollar is in sell-off mode, with multiple factors weighing on the American currency. Not only did the Federal Reserve vote divided to keep rates on hold on Wednesday, creating doubts about a September hike, but US Q2 GDP missed expectations. A suspected JPY intervention adds pressure on the Greenback.

Gold recovers the $4,100 level as US Dollar weakens further

Gold trades just above $4,100 amid a US Dollar sell-off. The Greenback enjoyed some near-term demand following Wednesday's post-FOMC downfall, but was unable to retain its gains. The preliminary estimate of the US Q2 GDP showed the economy grew at an annual rate of 1.5%, missing the market's expectations of 2.1%.

Ripple Price Forecast: XRP builds recovery momentum as whales increase exposure

Ripple (XRP) rises toward the pivotal $1.10 resistance on Thursday, marking three consecutive days of gains. This neutral-to-slightly bullish outlook follows the Federal Reserve (Fed) decision to leave interest rates unchanged in the 3.50%-3.75% range.

The FOMC: Rates left on hold; dollar falls as Warsh fails to vote for hike

The Fed kept interest rates on hold today, defying a 30% chance in the Fed Funds Futures market that rates would rise. The Committee voted 9-3 to keep rates on hold, with governors Kashkari, Hammack and Logan all voting to hike rates due to concerns about inflation. The immediate market reaction has been a sharp drop in the USD on a broad basis.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.