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- XAG/USD rose on risk and pushed US Treasury yields lower.
- The US PPI for August tempered inflationary pressures from producers.
- XAG/USD Price Analysis: Break above $20.00 to send the money towards the $21.00 mark.
Silver price bounces around the 50-day EMA and climbs to a daily high near $19.69 on Wednesday after the US Department of Labor revealed the August PPI was in line with dampening expectations. inflationary pressures from the producer side, unlike Tuesday’s CPI.
Therefore, XAG/USD is trading at $19.61, above its opening price of 1.86%.
Ahead of Wall Street’s open, US data released by the Bureau of Labor Statistics (BLS) showed the PPI for August fell 0.1%, in line with consensus, while the year-on-year figure the other was down to 8.7%, less than July’s. ratio of 9.8%. Meanwhile, the so-called core PPI, which excludes volatile items, rose slightly, 0.4% MoM, but on a yearly reading, rose slightly by 7.3%.
Meanwhile, the U.S. dollar index, a measure of the value of the dollar against a basket of six currencies, ended Wednesday’s session down 0.15% to 109.648, dragged down by yields in the US Treasury, mainly the benchmark 10-year note rate, unchanged during the day at around 3.404%.
Reflecting the above is the weaker US Dollar Index, down 0.09% below 110,000. signs of exhaustion, stable at around 3.414%.
Another tailwind for white metal prices was that the US 10-year TIPS, an indicator of real yields, gained just one basis point, to 0.939%.
On Thursday, the US economic record will feature jobless claims, retail sales and manufacturing indexes from the New York and Philadelphia Fed, a prelude to October’s ISM report.
Silver Price Analysis (XAG/USD): Technical Outlook
The XAG/USD daily chart depicts the white metal as biased neutral to bearish. However, if silver bulls reclaim the $20.00 mark, it could set the stage for a test of a four-month-old descending trendline around $20.20 before reaching the EMA of 100 days at $20.39. A break of the latter will expose the August 15 cycle high at $20.87, ahead of the psychological level of $21.00.
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