Silver prices rose by 0.49% due to lower US inflation data and prospects of a Fed rate cut. The technical analysis indicates bearish trends with the RSI showing selling pressure and lower highs and lows. Resistance levels include $29.19, $31.54, $32.00, and $32.51, while support points are at $29.00, $28.28, $28.00, $27.01, and $26.82.
The Silver price gained as US inflation figures released by the BEA dropped, renewing hopes of a Fed rate cut. This led to a decrease in the Greenback and XAG/USD trading at $29.13 after a low of $28.78. The uptrend in Silver seems exhausted with the RSI entering seller territory and lower highs and lows.
Buyers need to clear the 50-DMA at $29.19 to regain control, with the next hurdle being the June 7 high of $31.54. Breaking this level would target $32.00 and $32.51. Conversely, if XAG/USD drops below $29.00, it may reach $28.28 and $28.00. Key support levels lie at $27.01 and the 100-DMA at $26.82.
The Personal Consumption Expenditures (PCE) measures changes in prices of goods and services bought by US consumers monthly. The PCE Deflator can account for substitutions in consumer purchases, making it the preferred inflation measure for the Fed. A high reading is bullish for the USD, while a low reading is bearish.
