Silver Price News: Silver Jumps Above $24 After Positive US Inflation Data

The silver price jumped above the $24 threshold for the first time since April 25^th after the US inflation reading came in below forecast and pushed investors into continuing buying the precious metal.

Indeed, excluding food and energy, CPI increased by a tiny 0.2% and this data was seen by the markets as a confirmation that inflation has already reached a peak.

In this scenario, silver confirmed its solid momentum, as investors are still accumulating the precious metal. From a technical perspective, silver remains in a positive uptrend, with the resistance levels at $24.40 per ounce (yesterday’s top), $24.70 and $25.40.

The peaks reached in the spring between $26.50 and $27.50 per ounce are still far away, but silver is continuing to show strength and these levels could be seen as a medium-term target, particularly if the US Dollar continues to weaken. Of course, there are also risks: one of them is surely the speed of the recent rally which has been extremely fast and could trigger a healthy consolidation phase in order to give further energy to the current bullish movement.

Investors’ eyes are now focused on central bank decisions, with the last 2022 meetings of the Federal Reserve, the ECB and the Bank of England. All of them are expected to raise their rates by 0.50%. A final note regarding the silver price and its relationship with gold. In the last few weeks, the grey metal overperformed its noble brother, with the gold to silver ratio (the number of ounces of silver needed to buy one ounce of gold) declining from over 80 to 76.

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