- Silver is trading around $23.00 as attention turns to US CPI data for August.
- Investors remain concerned about the outlook for inflation in the US due to stronger wage growth and labor market stability.
- Silver price remains sideways in a range of $22.80-$23.20 for the last four trading sessions.
The price of the Silver (XAG/USD) It moves and falls around $23.00 in the New York session. The white metal has remained in the woods for the last four trading sessions, as investors have stayed on the sidelines awaiting US inflation data for the month of August, which will be published on Wednesday at 12: 30 GMT.
The S&P 500 index has opened lower, as investors have remained cautious about the US Consumer Price Index (CPI). Investors remain concerned about the inflation outlook due to stronger wage growth and labor market stability. Inflation above the desired rate of 2% appears more persistent and will not be easily contained by the Federal Reserve (Fed). This would keep alive hopes of a further interest rate hike by the Fed.
The US Dollar Index (DXY) recovered significantly to near 104.90, but is struggling to extend the rally as investors await US CPI data for further guidance. US headline inflation is expected to expand at a stronger 0.6% pace due to the recovery in gasoline prices. The core CPI, which excludes oil and food price volatility, is expected to grow at a stable rate of 0.2%.
Silver technical analysis
Silver price remains sideways in a range of $22.80-$23.20 since the last four trading sessions ahead of the US inflation data. The white metal demonstrates a volatility squeeze, which is being followed by a break in it. The 100-period exponential moving average (EMA) at $23.17 continues to act as the main roadblock for silver price bulls. Horizontal support is drawn from the August 15 low at $22.23.
The Relative Strength Index (RSI) (14) is slipping within the bearish range of 20.00-40.00, indicating that the bearish momentum has been triggered.
La Plata hourly chart
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
