Silver (XAG/USD) traded in a narrow range around $24.50 in Tuesday's European session. The white metal has struggled to find a direction since Friday's trading session. The asset is expected to break out of its sideways trend after the release of the United States Consumer Price Index (CPI) data for February, which will be published at 12:30 GMT.
The monthly headline inflation is forecasted to have risen by 0.4% from 0.3% in January. In the same period, the core inflation that strips off volatile food and energy prices is anticipated to have grown at a slower pace of 0.3% against the prior reading of 0.4%. For annual figures, economists expect that the headline CPI remains sticky at 3.1% and the core inflation decelerates to 3.7% from 3.9% in January.
The market expectations for the Federal Reserve (Fed) rate cuts in the June policy meeting will be significantly influenced after the release of the inflation data.
Ahead of the US consumer price inflation data, market sentiment is quite bullish. S&P 500 futures have posted significant gains in the London session, portraying the higher risk appetite of the market participants. 10-year US Treasury yields have dropped to 4.10%. The US Dollar Index (DXY) trades inside Monday's trading range around 102.80.
Silver Technical Analysis
Silver price turn sideways after testing the horizontal resistance plotted from December 22 high at $24.60. The overall trend is bullish, however, a time correction move is expected before a fresh upside move. Advancing 20-day Exponential Moving Average (EMA) near $23.50 indicates that the near-term demand is upbeat.
The 14-period Relative Strength Index (RSI) oscillates in the bullish range of 60.00-80.00, indicating that a bullish momentum is already triggered.
Source : FXstreet
