Silver Struggles as Risk Sentiment Weighs on Prices

Silver (XAG/USD) is trading around $32.91, facing similar pressure as traders digest the latest trade headlines. The metal remains under pressure despite geopolitical uncertainties, as a stronger dollar and rising risk appetite diminish its safe-haven appeal.

However, silver has managed to hold above the critical $32.75 support level, suggesting that buyers are still active at lower levels. According to the latest data, silver is down nearly 3% from its monthly high of $33.85, reflecting the broader shift toward riskier assets.

Focus Shifts to US Inflation and Fed Policy

Looking ahead, traders will focus on US inflation data due this week, which could provide further direction for gold and silver. The Consumer Price Index (CPI) is expected to show a 4.1% year-over-year increase, a potential sign that inflation remains sticky despite recent Fed rate hikes.

Additionally, Fed Chair Jerome Powell’s speech on Thursday will be closely watched for insights into the central bank’s outlook on future rate cuts.

Short-Term Forecast

Gold faces near-term pressure, with a break below $3,259 potentially signaling a deeper correction toward $3,211, while silver must clear $33.25 to confirm an uptrend.

Gold Prices Forecast: Technical Analysis