Silver Price Forecast: XAG/USD’s post-CPI reversal is limited at $27.50 area
|- Silver prices' decline is capped near $27.50 and remains practically flat on the day.
- US CPI endorses Fed's "higher for longer" stance and crushes risk appetite.
- XAG/USD's broader bullish trend remains intact with $28.53 high on the bull's focus
Silver Prices’ (XAG/USD) reversal following stronger-than-expected US inflation data has been contained at the mid-range of the $27.00’s. The metal is regaining some ground as the dust from the US data settles, with the daily chart practically flat.
Consumer prices accelerated unexpectedly in the US in March, with the headline inflation accelerating to 0.4% against expectations of a 0.3% reading, while the yearly rate rose to 3.5% from 3.2% in February. Likewise, the Core inflation accelerated to 0.4% from 0.3% in the previous month, while the yearly rate remained steady at 3.8%.
These figures confirm that price pressures remain stubbornly high at levels well above the Fed’s 2% target rate which has crushed hopes of monetary easing in the coming months.
US Treasury yields skyrocketed after the news, dragging the US Dollar up with them, although the negative impact on precious metals has been limited. Silver, in particular, has retraced most of the ground lost after the release and is trading near the daily opening.
XAU/USD Technical Analysis
The XAU/USD’s broader bullish trend remains intact, with no clear sign of a correction so far except for the bearish divergence in the RSI. Immediate support is at $27.57 and below here, at $26.85. Resistances are $28.53 and the $30,00 psychological level.
XAG/USD 4-hour Chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.