Silver price (XAG/USD) pares weekly gains at the highest levels in two months, mildly offered near $23.85 heading into Friday’s European session. In doing so, the bright metal prints the first daily loss in four ahead of the key inflation data from Eurozone and the US.

Silver price is in a positive trajectory despite receding fears of potential United States banking turmoil. Earlier, investors underpinned bullions as a safe-haven to dodge volatility-inspired by the collapse of three mid-size US banks.

Going forward, Fed’s preferred inflation tool, the US core Personal Consumption Expenditure (PCE) Price Index data will remain in the spotlight. Analysts at Credit Suisse expect “Monthly reading to just round down to 0.3%, leaving YoY core inflation unchanged at 4.7%. Monthly headline inflation should be similar to the core, but the YoY measure should drop to 5.1% owing to an easy base effect.”

The precious metal’s latest weakness could be linked to a pullback from the resistance line of a two-week-old bullish channel. The XAG/USD retreat also justifies the overbought RSI (14).

However, bullish MACD signals and the stated channel formation keep the Silver bears off the table unless the quote breaks the $23.30 mark, comprising the stated channel’s lower line.

Even so, the 100-SMA and 200-SMA can challenge the bullion’s additional downside near $22.30 and $21.70.

Should the Silver price remains bearish past $21.70, the odds of witnessing a slump toward the $20.00 round figure and then to the monthly low of $19.90 can’t be ruled out.

On the flip side, XAG/USD recovery needs to cross the immediate channel’s top line, close to $24.05 at the latest.

However, the yearly high marked in February around $24.65 can challenge the Silver buyers before giving back control to them.

Selling silver below the order block

Mar 31 2023