Silver (XAG/USD) is trading near the lower end of its daily range around the $68.00 level during the early European session on Thursday, following a modest intraday uptick. The metal remains close to a nearly two-week high reached on Wednesday, with market participants awaiting the release of the US Producer Price Index (PPI) later today and the US Consumer Price Index (CPI) on Friday. These data releases are expected to provide further insight into the Federal Reserve's policy path, which could influence the US Dollar and, consequently, silver prices [1].
From a technical standpoint, silver has been confined within a familiar range for the past two weeks and is struggling to maintain momentum above the 100-period Simple Moving Average (SMA) on the 4-hour chart. However, momentum indicators such as the Relative Strength Index (RSI) in the high-50s and a positive Moving Average Convergence Divergence (MACD) suggest that buyers retain control as long as pullbacks remain limited. A sustained move above $68.00 is seen as necessary for silver to target the $70.00 psychological level and potentially the August swing high above $71.00 [1].
On the downside, immediate support is identified near $65.40-$65.30, with a break below this range likely to shift the near-term bias in favor of bearish traders and expose the monthly swing low around $63.35-$63.30. Further declines could see silver testing the $62.20 support zone [1].
Market participants are closely monitoring upcoming US inflation data for cues on the Federal Reserve's next moves, which are expected to impact the US Dollar and, by extension, silver prices. No explicit analyst opinions or forward-looking statements beyond technical analysis are provided in the source [1].
CONCLUSION
Silver is trading near a two-week high as traders await key US inflation data, which could influence the Federal Reserve's policy direction and impact silver prices. Technical indicators suggest buyers remain in control, but a sustained move above $68.00 is needed for further gains. The market remains cautious ahead of the upcoming US PPI and CPI releases.