Silver price has been finding support from its positive performance both as a precious and industrial metal. China’s reopening and the Fed’s monetary policy remain major drivers of the metal’s market. In the short term, the US CPI data set for release on Thursday will be a key influencer.
In recent months, silver price has been on a bullish trend. In fact, since the beginning of September when it hit its two-year low, it has rallied by about 33.50%. In comparison, its more lustrous cousin -gold has had its value increase by about 11% during the same timeframe.
China’s reopening and the subsequent optimism over heightened demand is one of the major factors behind silver price rallying. Seeing that the Asian nation is the leading consumer of industrial metals globally, the easing of COVID-19 restrictions is expected to strengthen the economy and improve industrial activities.
At the same time, expectations that the Fed will eventually ease on its aggressive interest rate hikes has continued to boost silver price and precious metals in general. On Thursday, the release of US CPI data will further avail cues on US inflation and the market mood regarding the Fed’s monetary policy.
Silver price outlook
Silver price continues to find support in its performance both as an industrial and precious metal. While it edged lower on Wednesday, the commodity has continued to find support at 23.00 as has been the case for about three weeks now.
As seen on its daily chart, the metal remains above the 50-day EMA while hovering around the short-term 25-day EMA. As investors eye the US CPI data, the range between 24.00 and 23.00 will be worth watching.
Signs that the US inflation has peaked may give the bulls an opportunity to boost silver price to the next target at 24.77. However, they will need to gather enough momentum to break the resistance at 24.50. However, this bullish thesis will be invalidated by a move below the 50-day EMA at 22.61.