Silver (XAG) Daily Forecast: Bullish Run Continues, US CPI Data in Focus

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Updated: Apr 10, 2024, 07:18 GMT+00:00

Key Points:

Silver targets May 2021 highs, breaking key resistance at $28.29 amidst a soft US Dollar.
US Treasury yield reversal fuels precious metals, with Silver surpassing the $28.00 threshold.
Anticipation for US CPI data and Fed's stance on inflation could pivot Silver's price trajectory.

Silver (XAG) Daily Forecast: Bullish Run Continues, US CPI Data in Focus

Market Overview

Silver surged to $28.29 level, a near three-year peak, with its price piercing crucial resistance points and aiming for the highs of May 2021. This ascent was fueled by a weakened US Dollar and declining US Treasury yields, amidst speculation around the Federal Reserve’s monetary policy stance.

Impact of US Economic Indicators on Silver Prices

The fluctuating US Treasury yields have notably influenced the precious metals market. The US 10-year benchmark note experienced a downturn to 4.37%, marking a decrease of five basis points, which, combined with a softer Greenback, propelled Silver above the $28.00 mark.

Additionally, the market is keenly awaiting the latest US inflation report, with expectations set for a slight monthly easing in the Consumer Price Index (CPI), though anticipated to be higher on an annual basis compared to previous data. The core CPI is also expected to show a decrement in its figures.

Federal Reserve’s Role and Upcoming Financial Events

Recent statements from Federal Reserve officials, including Minnesota’s Neil Kashkari, emphasize the US central bank’s commitment to combating inflation. These pronouncements, along with geopolitical developments such as the ongoing conflict between Israel and Hamas, play a significant role in shaping market sentiment towards precious metals like Silver.

The forthcoming financial events, including the release of the US CPI data and FOMC meeting minutes, are pivotal and could significantly sway Silver prices.

Silver (XAG/USD) Price Forecast

Silver (XAG/USD) is trading at $28.17, showing a modest increase of 0.10% on Wednesday. The metal navigates above the pivot point of $28.09, suggesting an ongoing bullish trend.

Resistance is anticipated at $28.64, $29.24, and $29.52. If Silver breaches these levels, it may encounter further upside momentum. Conversely, support is established at $27.61, $27.19, and $26.66, where potential buying pressure could emerge.

Technical indicators highlight Silver’s upward trajectory, with the price having surpassed the 261.8% Fibonacci extension level at $28.09. Traders are now eyeing the 300% and 341.4% Fibonacci extension levels as the next targets. The 50-day Exponential Moving Average (EMA) at $26.84 and the 200-day EMA at $25.09 provide additional layers of market sentiment.

In conclusion, Silver remains in a bullish stance above $28.09. A descent below this critical level, however, could initiate a notable sell-off, placing the focus on the underlying EMAs and Fibonacci levels for directional clues.

About the Author

Arslan Aliauthor

Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.

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