Silver (XAG/USD) has resumed its uptrend, trading a few cents above $66.00 during Wednesday’s European session after finding support at the $64.20 area on Tuesday [1]. The precious metal continues its bullish momentum from early August lows in the mid-$56.00s, with market participants now aiming for the $67.17 resistance level, which marks the peak of the last two months' trading range [1]. This move comes ahead of the release of July’s US Consumer Price Index (CPI) report, a key event expected to influence Federal Reserve policy [1].
Analysts at ING highlighted that Friday's soft US jobs data did not significantly impact the US Dollar, with market focus shifting to the upcoming inflation data as the decisive factor for the Fed’s next move [1]. ING experts noted that the market anticipates a softer inflation reading, and a 0.1% month-on-month increase in core inflation could materially shift expectations. Specifically, a soft CPI number could reduce the probability of a September Fed rate hike from 50% in favor of no change [1].
Technical analysis supports the bullish outlook for silver. After rebounding from $64.20, momentum indicators such as the Relative Strength Index (RSI) at 62.40 and a positive MACD histogram around 1.17 suggest continued upward pressure [1]. A confirmed break above $67.17 (the June 22 high) would open the path toward the 200-day Simple Moving Average at $71.47 and the mid-June peak at $71.56, both seen as significant resistance levels [1]. On the downside, support is expected at Tuesday's low of $64.23, with further levels at $63.28 and $62.92, and a deeper target at $60.81 [1].
No explicit market reactions or analyst forecasts beyond the ING commentary were provided in the article. The focus remains on the upcoming US CPI data and its potential to influence both silver prices and Federal Reserve policy expectations [1].
CONCLUSION
Silver has regained bullish momentum, trading above $66.00 as investors await the US CPI report, which could be pivotal for both the metal and Federal Reserve policy expectations. Technical indicators and analyst commentary point to further upside potential if key resistance levels are breached. The market’s next move hinges on the inflation data release.