Silver prices (XAG/USD) are climbing towards a two-week high of $28.80 in Tuesday’s trading session. This uptick coincides with a decline in the US Dollar.
Stubborn US PPI Data Fails to Dent Silver:
- The US Producer Price Index (PPI) report for April came in stronger than expected, suggesting persistent inflationary pressures.
- Despite this, the US Dollar weakened, potentially due to concerns about the Fed delaying rate cuts.
Weaker Dollar Boosts Silver:
- A declining Dollar makes Silver cheaper for investors holding other currencies, increasing its appeal.
Falling Treasury Yields Add Tailwind:
- The 10-year US Treasury yield has dipped further, reducing the opportunity cost of holding non-yielding assets like Silver.
US CPI Data in Focus:
- The key event for Silver this week is the release of US Consumer Price Index (CPI) data for April on Wednesday.
- A higher-than-expected CPI reading could further weaken the Dollar and bolster Silver prices.
Technical Analysis: Silver Hints at Bullish Momentum
- Silver has recovered significantly after finding support near $26.09.
- It is currently approaching its multi-year high of $28.80.
- The price has moved above the 20-period EMA, indicating a potential shift towards a bullish trend.
- The RSI has entered the 60.00-80.00 range, further suggesting bullish momentum.