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Silver holds near $63.50 as US CPI looms
Spot XAG/USD is testing near the $65.16 area, where a break could target $70.00 as traders weigh Fed rate expectations into Wednesday’s CPI release.
Silver prices are trading in a tight range near $63.50 in Asian hours, with XAG/USD close to an almost seven week high of $65.16 set on Friday, according to FXStreet.
FXStreet says the week ahead centers on US Consumer Price Index data for July due on Wednesday, because the report is expected to influence Federal Reserve rate expectations. Higher inflation would raise the risk of additional Fed hikes, a dynamic that could pressure silver because it does not pay yield.
The outlet also points to a shift in market pricing after US July Nonfarm Payrolls, which showed employers cut 23K jobs versus expectations for 80K new jobs. FXStreet cites CME FedWatch odds showing a 46% chance of a September rate hike, down from 67% a week earlier.
On the charts, FXStreet notes XAG/USD maintains a bullish near term bias while spot silver remains above the 20 day EMA at $60.14, with resistance pegged at $65.16. It adds that failure to hold that support could see a move back toward the year to date low near $54.77.
Latest closeSilver $61.56 ▼0.9%