The price of silver has fallen in recent days. It has crashed for the past four consecutive days and is now trading at the lowest level since October 3. This price is around 12% above the low level this year, which means that it has fallen by more than 14% in 2022. XAG/USD has fallen by more than 26% from its level highest this year. Similarly, SLV’s stock price has fallen more than 5.30% from its high this year.
US Inflation Data Ahead
Silver prices continued their downtrend as investors focused on upcoming US inflation data due out on Thursday. Economists polled by Reuters expect data to show headline consumer inflation fell from 8.3% to 8.1% in September. Core inflation, which excludes volatility in food and energy prices, is expected to rise from 6.3% to 6.5%.
Inflation data is important for gold and silver prices because it plays a role in the Federal Reserve. Higher inflation generally results in higher interest rates by the Federal Reserve. The Fed has already hiked 300 basis points this year and has signaled it will continue to do so in the coming weeks.
The case for a more hawkish Federal Reserve emerged on Friday when the United States released the latest jobs numbers. These figures revealed that the country’s unemployment rate fell to 3.5% even as the hiring rate fell. Consequently, analysts expect the Fed to hike another 125 basis points in November and December.
The price of silver will also react to the latest economic data from China, its largest market. China will release the latest inflation and trade figures on Thursday. The United States will also release the latest retail sales figures on Friday.
Silver Price Prediction
The hourly chart shows that the price of silver has been trending lower for the past few days. It managed to drop from last week’s high of $21.20. The price of the metal also retreated below the important support level at $19.91, which was the low level on October 5th.
Silver crashed below the 25-day moving average as the Relative Strength Index (RSI) and MACD continued to decline. Therefore, the XAG/USD price is likely to continue falling ahead of the next US inflation data. A move above the resistance at $19.92 will invalidate the bearish view.
SLV Stock Price Prediction
The hourly chart shows that the SLV stock price has been in a strong downtrend for the past few days. iShares Silver Trust ETF stock fell below the important support at $19.21. It crashed below the 25-day moving average while the RSI and MACD trended lower. The stock will likely continue to decline as sellers target the next key support at $18.