Baxia Markets
April 11, 2024

US Inflation Report Impact: Silver Prices Maintain Resilience

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Silver prices (XAGUSD) remained largely unchanged on Thursday, maintaining levels seen since Tuesday despite market fluctuations. Despite a retreat in the US Dollar, silver held below the $28.00 mark.

Traders in the precious metals market appeared to overlook the US inflation report released, which showed higher-than-expected inflation in March. Core CPI advanced by 0.4%, surpassing forecasts of a 0.3% rise. This data has significantly diminished the likelihood of a rate cut by the Federal Reserve in June.US Inflation Report Impact: Silver Prices Maintain Resilience

As a result of the inflation report, the Fed Funds Futures market adjusted its expectations, pushing the anticipated first rate cut from June to September.

Amidst these developments, silver prices have been influenced by rising industrial demand and escalating geopolitical tensions in the Middle East. Reports of Israel and Hamas rejecting ceasefire talks, coupled with Iran vowing retaliation for an airstrike on its embassy in Syria, have contributed to a boost in silver prices.

Technically, on the 1-hour timeframe, sentiment remains bullish for silver. Major indicators such as the EMA 50 being above the EMA 200 suggest a strong momentum, with a notable distance between both EMAs. Additionally, oscillator indicators continue to signal bullish sentiment, with MACD's signal line floating above the 0 line and RSI testing the 40-50% range for support. However, traders are cautioned that a deep pullback could occur if MACD dips below 0 and RSI falls below 40%.

Key Economic Releases to Watch Today

EUR,  ECB Interest Rate Decision

Forecast 4.50% vs Previous 4.50%

USD, Initial Jobless Claims

Forecast 216K vs Previous 221K


Forecast 0.3% vs Previous 0.6%



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