Silver Price Forecast: Mixed Macro Signals Drive Compression — Is a Breakout Coming?
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Key Points:
- Silver remains in consolidation as mixed macro signals create uncertainty in short-term direction.
- Strong industrial activity and rising inflation provide underlying support.
- A breakout from the current range will determine the next move in the silver market.
Silver (XAG) prices are trading in a narrow range due to uncertainty in the direction amid mixed macro signals. The ISM manufacturing PMI increased to 52.7%, indicating ongoing industrial strength. On the other hand, the manufacturing prices index increased to 78.3%, indicating increasing inflationary pressure. In my view, this combination holds silver in a consolidation period in the short term. This article presents the major macro drivers, technical structure and key levels that will determine the next move in silver market.