Silver rallied early Tuesday and kept churning around the $60 level after a softer US inflation print. A core CPI reading of 0.0% eased rate-hike pressure, but a looming death cross and Middle East tensions leave the metal choppy.
Silver rallied early on Tuesday and continued to bounce around the $60 level, caught between shifting headlines and cooling inflation. The move followed a US Consumer Price Index release that came in softer than markets expected, though analyst Christopher Lewis cautioned that the picture remains noisy and confused.
Softer CPI eases rate pressure
The core CPI figure printed at 0.0% instead of the expected 0.2%, a sign that inflation may be improving. Other inflation measures also looked weaker on the same print, beyond just the core gauge.
A softer inflation trend opens the possibility that the Federal Reserve may not have to raise rates as quickly, which can at times provide a floor for precious metals. Even so, the report is a single announcement, and the technical backdrop for silver has looked weak recently.
Death cross risk meets geopolitical noise
On the daily chart, the 50-day EMA is drifting lower and sits just below the 200-day EMA. A break beneath it would trigger a technical death cross, a signal longer-term traders often read as negative.
The $57 level has recently offered support, and a break below could open a move lower. For now the market appears content to churn in this vicinity. Statements out of the Middle East add another headache, having played havoc with the bond market and keeping silver choppy.
Source: FXEmpire
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