Silver Price Drops as US Dollar Strengthens on Inflation Data
The price of silver (XAG/USD) has retreated as the US Dollar strengthened following the latest inflation data release. The Personal Consumption Expenditures (PCE) Price Index rose 0.2% month-over-month in July, above forecasts of 0.1%, while core PCE inflation matched market expectations with a 3.3% annual rate.
The upside surprise gave the US Dollar a modest boost, but traders remain cautious ahead of the Federal Reserve's September meeting. Markets see a roughly 65% chance that interest rates will be left unchanged next month, which could prevent a deeper decline in silver prices.
Technical analysis suggests a neutral-to-bullish near-term bias for silver, with price attempting to build a base above short-term trend support while facing resistance from the 100-day Simple Moving Average (SMA). Immediate resistance emerges at $68.02, followed by the 100-day SMA at $68.31.