Silver Price Surges on Cooling US Inflation Rates

The price of silver has surged over 1.40% on Wednesday following the latest inflation report in the United States, which shows that prices are cooling down towards the Federal Reserve's goal of 2%. The XAG/USD is currently trading at $65.53.

From a technical perspective, the white metal is neutral to upward biased, with bulls gathering strength. They cleared the 50-day Simple Moving Average (SMA) at around $61.60 and also the July 6 high at $63.28 on its way towards reclaiming the $65.00 figure.

The Relative Strength Index (RSI) is bullish and aiming upwards, indicating that the path of least resistance is up. The first resistance would be the August 10 high at $66.59. Once surpassed, the next stop is the 100-day SMA at $68.87, followed by the 200-day SMA at $71.47.

For a bearish resumption, the XAG/USD must drop below the 50-day SMA. This can prompt investors to challenge the July 6 high turned support of $63.28. Beneath, the next area of interest is the $60.00 milestone.