- Silver price seems steady above $22 while US Dollar corrects.
- Fed Goolsbee said one-time persistent inflation is insufficient to temper long-term downtrend.
- The US Retail Sales data will guide the Silver price.
Silver price (XAG/USD) manages to shift its auction above the crucial resistance of $22 in the early European session on Thursday as investors digest that rate cuts by the won’t be announced Federal Reserve (Fed) atleast before June. The expectations of a rate cut by the Fed in the May monetary policy meeting have cooled down significantly on the persistent inflation outlook.
S&P500 futures has generated nominal gains in the late Asian session, portraying a marginal improvement in the risk appetite of the market participants. The US Dollar Index (DXY) has corrected gradually to 104.70 from three-month near 105.00. 10-year US Treasury yields have dropped to 4.24%.
On Wednesday, Chicago Fed Bank President Austan Goolsbee said one bad inflation data could not impact the broader trend, which is that price pressures are coming down to the 2% target. When asked about the timing of rate cuts, Goolsbee said the central doesn’t need to wait to reduce inflation to the 2% target to begin reducing the benchmark rates.
In today’s session, investors will focus on the United States Retail Sales data for January, which will be published at 13:30 GMT. The monthly Retail Sales are anticipated to have contracted by 0.1% after expanding 0.6% in December.
Silver technical analysis
Silver price trades in a Descending Triangle Chart pattern on a daily scale, which indicates a volatility contraction but with a negative bias. The 50-day Exponential Moving Average (EMA) near $23 continues to act as a barricade for the Silver price bulls.
The 14-period Relative Strength Index (RSI) consistently discovers support near 40.00. A slippage below the same would trigger a downside momentum.
Silver daily 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
Gold trades near record-high, stays within a touching distance of $3,100
Gold clings to daily gains and trades near the record-high it set above $3,080 earlier in the day. Although the data from the US showed that core PCE inflation rose at a stronger pace than expected in February, it failed to boost the USD.
EUR/USD turns positive above 1.0800
The loss of momentum in the US Dollar allows some recovery in the risk-associated universe on Friday, encouraging EUR/USD to regain the 1.0800 barrier and beyond, or daily tops.
GBP/USD picks up pace and retests 1.2960
GBP/USD now capitalises on the Greenback's knee-jerk and advances to the area of daily peaks in the 1.2960-1.2970 band, helped at the same time by auspicious results from UK Retail Sales.
Donald Trump’s tariff policies set to increase market uncertainty and risk-off sentiment
US President Donald Trump’s tariff policies are expected to escalate market uncertainty and risk-off sentiment, with the Kobeissi Letter’s post on X this week cautioning that while markets may view the April 2 tariffs as the "end of uncertainty," it anticipates increased volatility.
US: Trump's 'Liberation day' – What to expect?
Trump has so far enacted tariff changes that have lifted the trade-weighted average tariff rate on all US imports by around 5.5-6.0%-points. While re-rerouting of trade will decrease the effectiveness of tariffs over time, the current level is already close to the highest since the second world war.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.