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Silver slips below $68 ahead of US core PCE inflation data
XAG/USD fell 1.6% to about $67.87 as investors awaited the Fed’s preferred core PCE gauge and ahead of expected signals on the monetary policy outlook.
Silver prices edged lower in Asian trading on Tuesday, with XAG/USD down 1.6% to around $67.87, as investors grew cautious ahead of the release of US Personal Consumer Expenditure Price Index data for July.
FXStreet said traders are focused on core PCE inflation, the Federal Reserve’s preferred inflation measure, with expectations calling for annualized growth at 3.4%. The report notes that higher inflation would raise fears of further Fed interest rate hikes, which can weigh on silver as a non-yielding asset.
This week, another potential catalyst is expected from Federal Reserve Chair Kevin Warsh’s comments at the Jackson Hole Symposium on Thursday. The report added that Warsh is historically reluctant to provide rate forward guidance, but may highlight upside inflation risks.
On the technical side, FXStreet reported that XAG/USD held above the 20-day exponential moving average near $64.64, with the RSI around 61.7 suggesting positive momentum after recent consolidation. Near-term support was flagged around $64.64, while a move above the August 21 high near $70 could open the door to higher levels toward $71.33, then $77.00.
Latest closeSilver $64.83 ▼0.1%