Silver On the Move
Silver prices are on the move again today following yesterday’s breakout. The metal has been a firm favourite over recent weeks, with silver futures now up around 28% from the YTD lows. The rally has seen price breaking out above the former YTD highs to print fresh highs on the year with price currently holding above the $25 mark for the first time since Q2 2022.
Weaker USD Supporting
The main catalyst for the upside move this week was yesterday’s inflation data and subsequent fall in USD. While core inflation was seen rising slightly on the prior month (5.6% from 5.5%), traders seem to be focusing more on the 1% fall in headline inflation. With headline CPI dropping back down to 5% from 6% the prior month, traders are scaling back their Fed tightening expectations further which is helping lead USD lower, creating room for silver to breakout higher near-term.
Bullish Outlook
With market pricing for the May FOMC currently split 65-35% in favour of a .25% hike, there is plenty of room for silver to continue higher near-term. Any further dovish Fed commentary or data weakness in the run up to the May meeting is likely to see that pricing swinging in favour of an unchanged decision which should keep pressure on USD and metals firmly supported.
Technical Views
Silver
The breakout above the 24.0073 level and the bear channel top has seen the market exploding higher. Price is now fast approaching a test of the next big technical resistance at the 26.0974 level. With momentum studies bullish, the focus is on a further break higher and a test of the 26.9194 level above.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.