Silver prices dropped by 1.02% today to $27.673 per ounce after a 1.85% gain in the previous session.
Key Points
- U.S. Core PPI data today could significantly impact silver prices.
- Upcoming U.S. CPI and PCE reports will further influence silver’s direction.
- India’s reduced silver import duties may support demand and limit downside risks.
Silver Daily Price Analysis – 13/08/2024
Silver prices saw significant volatility as it fell to $27.673 per ounce today after opening at $27.954, marking a 1.02% decline. This pullback follows a 1.85% gain in the previous session, where silver closed at $27.954 after opening at $27.448. The rise yesterday was driven by a retreat in U.S. Treasury yields, which provided temporary support for precious metals, including silver.
However, the ongoing uncertainty surrounding the Federal Reserve’s monetary policy has kept the market on edge. Over the weekend, Fed Governor Michelle Bowman emphasized that inflation remains well above the Federal Reserve’s target, which has led to reduced expectations for aggressive rate cuts. This cautious stance by the Fed has contributed to today’s decline as investors reevaluate their positions in anticipation of upcoming economic data.
Key Economic Data and News to Be Released Today
Today’s decline reflects the market’s anticipation of significant economic data releases, including the U.S. Core PPI, which is scheduled for later today. The Core PPI is a vital indicator of inflationary pressures at the wholesale level and could influence the Federal Reserve’s policy decisions. As silver hovers below the critical $28 mark, any unexpected outcomes from the Core PPI could lead to sharp price movements, depending on how the data aligns with market expectations.
In addition to the Core PPI, traders are bracing for other key economic reports this week, particularly the U.S. CPI and the PCE price index, which is the Fed’s preferred measure of inflation. Should the data indicate persistent inflation, we may see further downside pressure on silver due to a stronger dollar and rising yields. Conversely, weaker-than-expected data could offer some respite, potentially allowing silver to recover.
Global factors, such as India’s reduction in silver import duties, are also expected to support demand, particularly in the jewelry sector, providing a buffer against potential downside risks.
Silver Technical Analysis – 13/08/2024
The 200 EMA is currently around the $27.700 level. Silver’s price is just above this EMA, indicating that the market still holds some bullish sentiment.
However, the proximity of the price to the 200 EMA suggests a potential area of consolidation or indecision in the market. If the price breaks below this level, it could signal a shift to a more bearish trend in the short term.
Silver Fibonacci Key Price Levels 13/08/2024
Short-term traders planning to trade XAG/USD today should keep a close eye on the following key price levels for the day:
| Support | Resistance |
| 27.433 | 28.048 |
| 27.243 | 28.238 |
| 26.935 | 28.545 |
Risk Disclosure: The information provided in this article is not intended to give financial advice, recommend investments, guarantee profits, or shield you from losses. Our content is only for informational purposes and to help you understand the risks and complexity of these markets by providing objective analysis. Before trading, carefully consider your experience, financial goals, and risk tolerance. Trading involves significant potential for financial loss and isn't suitable for everyone.
