Silver Daily Price Analysis – Silver Price Volatility Continues

Silver prices remain volatile as markets navigate conflicting signals. Investors are weighing the impact of potential interest rate cuts following the US inflation data.

Key Points

• Despite an initial rally, silver remains under pressure due to expectations of postponing the Federal Reserve interest rate cut.
• The better-than-expected US inflation figures hold the key to silver’s direction; retail sales and core PPI data are in focus.
• Key technical indicators, including the EMA and RSI, suggest that silver’s downtrend may persist.

Silver Daily Price Analysis – 14/02/2024

Yesterday, a weaker US Dollar and hopes for easing inflation initially caused silver prices to rise. Silver is often seen as a hedge against inflation and benefits when the dollar weakens. Later, higher-than-expected US inflation data and statements from Federal Reserve officials signaling continued interest rate hikes led to a sell-off, erasing some of the gains. 

Silver prices were showing signs of consolidation in today’s early trading hours. Currently, the metal is finding support around the $22.00 level, quickly rising to $22.220, a whooping +0.46% increase above yesterday’s closing price. Still, short-term profit-taking and a cautious atmosphere ahead of key US retail sales data might limit significant upside potential.

Key Economic Data and News to Be Released Today

Following the CPI data that was released yesterday, the Core PPI data release coming up later this week could trigger a significant move in either direction for silver. If PPI numbers come in higher than expected, it could fuel further rate cut delays and put pressure on silver prices.

Lower-than-expected inflation might favor silver favorably, as it could ease the Fed’s aggressive stance.

But for today, continued hawkish signals from Fed officials will likely weigh on silver prices, while signs of a potential shift in their approach could provide support.

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Silver Technical Analysis – 14/02/2024

Looking at Silver from a technical perspective, all indications agree with the previously established fundamental analysis that silver will continue its bearish direction.

Judging from the EMA and the RSI, there is very little upward potential for the precious metal, mainly because it is currently trending under the 200 EMA and far from being oversold. However, if Silver price reverses to the upside, then it might test 22.40, and then the next price target lies at 23.35. 

Silver Fibonacci Key Price Levels 14/02/2024

Short-term traders planning to invest in silver today should keep a close eye on the following key price levels for the day: