The warm CPI data has slowed down the recovery of silver, triggering a lateral consolidation in the region of $22 an ounce. After the release of the data, the spot price of the precious metal has fallen from $22.2 to around $21.8, before starting to recover, returning to the $22 mark.
Overall, silver has shown resilience and, for the time being, we have not seen any new serious sell off, an element that can be considered as a positive signal. In other words, the modest rebound of inflation is not worrying investors, while the annual data (3.7%) is far away from the peak of June 2022, when the U.S. prices were growing by more than 9% on an annual basis.
On the other side, the U.S. economy is remaining strong, and this could be seen as supportive for the silver price, also considering the significant part of demand for this precious metal coming from different industrial sectors.
Analysing the technical picture, the area of $22.2 is now representing the first resistance zone for silver and a clear surpass of this level could open space for further recoveries. Vice versa, in case of correction, silver is expected to find support at $21.8 and $21.6, where should be placed strong buying orders. The next two support levels of $21.3 and $20.7, for the time being, are much farther off.
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