Silver has returned to levels a few cents above $66.00 in Wednesday’s European session after finding support at the $64.20 area on Tuesday.
XAGUSD keeps the bullish trend from early August lows in the mid-$56.00s range, with bulls aiming for the $67.15 resistance area ahead of the release of July’s US Consumer Price Index (CPI) report, due later in the day.
Technical analysis indicates that a confirmation above the mentioned $67.17 (June 22 high) would clear the path towards $71.47, and the mid-June peak, at $71.56, which is likely to offer significant resistance.
Analysts at ING noted that, “Friday’s soft US jobs data did not weigh heavily on the Dollar,” with the market instead viewing upcoming inflation data as the decisive factor for the Fed’s next move.
In that sense, ING experts point out that “the market looks to be expecting a softer price story,” and suggest that to materially shift expectations, “we would probably need to see a 0.1% month-on-month read on core inflation – which some think is possible.”
In their view, “a soft number should drag market pricing of a September Fed rate hike away from a 50% probability in favour of no change.”
(Source: OANDA)
The post Silver resumes uptrend, bulls aiming for $67 appeared first on Financial Mirror.
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