Silver (XAG/USD) pares some of Thursday’s losses during the New York session, up some 0.96% trading at $22.14 at press time. In the American session, the market sentiment switched towards a risk-on, with US equities rising,  between 0.17% and 0.60%, while US Treasuries fell as investors trimmed bets on the pace of the Fed bond taper.

Early in the New York session, the US Department of Labor released the Consumer Price Index for November. Numbers came within expectations, with the headline on an annual basis at 6.8%, trailed by October’s 6.2% figure. Meanwhile, Core CPI, which excludes energy and food, rose 4.9%, higher than the October 3.6%. These figures have not been seen since 1982, and its upward move is attributed mainly to elevated prices in gasoline, shelter, food, and vehicles.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The silver 1-hour chart shows a $0.30 spike once the US CPI headline news crossed the wires, printing a daily high of around $22.23. The 50-hour simple moving average (SMA) at $22.14 is under pressure at press time, but it has another support level around the area, with the central daily pivot at $22.07.

Silver’s first resistance would be the confluence of the 100-hour SMA and the R1 daily pivot around the $22.25-31, followed but the 200-hour SMA at $22.41. A breach of the latter would expose the December 9 high at $22.46.

On the flip side, the central daily pivot at $22.07 would be the first line of defense for the non-yielding metal bulls. A break below that level would expose $22.00, followed by the December 9 low at $21.85.

Silver Supported By 21.40 - 21.80

Dec 12 2021

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