Silver Holds 50-Day Average Ahead of US CPI Release
Spot silver trades at $64.20, up 0.97% from Thursday's close. Buyers defended the 50-day moving average at $62.53 after a sharp selloff. The market awaits US Consumer Price Index data at 12:30 GMT. This release will determine if the recent rebound extends or fails.
Spot silver (XAGUSD) traded at $64.20 at 09:31 GMT. The price is up $0.62, or 0.97%, from the previous close. The session high reached $64.35, while the low touched $63.04. Buyers stepped in to prevent a breakdown below the 50-day moving average. This support level sits at $62.53. The main trend on the swing chart turned down earlier when the price broke $63.31. Sellers failed to push the metal lower into the $62.98 support zone. A cluster of support between $60.835 and $62.98 absorbed the selling pressure.
Yields and Dollar Pressure Metal
The 10-year Treasury yield remains near 5.0%. The US dollar is firm following Thursday's advance. Crude oil prices stay above $100 per barrel. These factors keep pressure on the silver outlook. The probability of a Federal Reserve rate hike in September is near 70%. Thursday's Producer Price Index data showed a core increase of 0.2%. This figure was below the 0.3% forecast. However, the high oil prices kept inflation concerns alive. Markets adjusted their expectations for monetary policy accordingly.
CPI Data Defines Short-Term Path
US Consumer Price Index data arrives at 12:30 GMT. Economists expect headline inflation to rise 0.4% month-over-month. The annual rate is projected near 3.4%. Core CPI is expected to rise 0.2%. A core print at or below 0.2% could weaken yields. This would reduce pressure on the dollar. A lower dollar and yield environment gives silver room to extend its rebound. Conversely, a higher print would reinforce the bearish trend. The August data covers the period before the latest crude surge. It does not include the full impact of recent supply disruptions.
Technical Levels Guide Trading Strategy
A sustained move above $62.53 signals counter-trend buying. This would support a stronger rebound toward $68.33. That level is required to change the main trend to up. A break below $62.53 would confirm weakness. The next support zone lies between $61.04 and $60.835. This area includes the 61.8% retracement level. GN auto markets/commodities: silver prices notes that volatility is likely to remain high. Traders should expect two-sided movement around the 50-day average. The intermediate range extends from $54.78 to $71.18.
