Silver Price Forecast: XAG/USD remains below $32 as US yields rebounds ahead of US PCE Inflation
Silver price faces pressure around $32.00 as US Treasury yields gains ground ahead of the US PCE inflation data for February.
US President Trump reiterates threats to impose tariffs on Eurozone.
Investors seek further development on Russia-Ukraine peace.
Silver price (XAG/USD) continues to face selling pressure around $32.00. The white metal is down an almost 0.3% to near $31.70 in European trading hours on Thursday as United States (US) bond yields have bounced back after a six-day losing streak ahead of the US Personal Consumption Expenditure Price Index (PCE) data for January, which will be released on Friday.
10-year US Treasury yields is up 1.3% to near 4.31% at the press time. Technically, higher yields on interest-bearing assets weighs on non-yielding assets, such as Silver.
Economists expect the US core PCE inflation – which excludes volatile food and energy prices – to have decelerated to 2.6% from 2.8% in December on year. Month-on-month inflation data is estimated to have grown by 0.3%, faster than the former reading of 0.2%.
Investors will pay close attention to the US core PCE inflation data as it is will influence market expectations for the Federal Reserve’s (Fed) monetary policy outlook, being a Fed’s preferred inflation gauge.
Meanwhile, US President Donald Trump’s tariff agenda continues to support the Silver price. On Wednesday, Trump reiterates threats to impose 25% tariffs on cars and other things imported from the Eurozone.
On the geopolitical front, investors await meeting of European leaders with United Kingdom (UK) Prime Minister Keir Starmer to discuss over President Trump’s attempt to end war in Ukraine quickly.
Silver technical analysis
Silver price slides below $32 after failing to sustain above the December 12 high of $32.33. The asset has fallen to near the 50-day Exponential Moving Average (EMA), which trades around $31.40.
The 14-day Relative Strength Index (RSI) falls inside the 40.00-60.00 range, suggesting that the bullish momentum has been faded. However, the bullish bias remains intact.
Looking down, the upward-sloping trendline from the August 8 low of $26.45 will act as key support for the Silver price around $30.00. While, the February 14 high of $33.40 will be the key barrier.
Silver daily chart
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