Silver Rally Fails as Core PCE Index Disappoints

Silver's recent rally failed to hold up as the core Personal Consumption Expenditures (PCE) index came in under expectations. Despite this, silver was unable to sustain its gains and retreated to the 50% retracement of its all-time high at $60.84.

The daily swing chart indicates that the main trend remains down for silver. A break above $67.55 would be needed to change the trend, while a break below $60.30 would signal a resumption of the downtrend.

Despite the PCE's softer-than-expected reading, which took some inflation pressure off the rate trade, silver's price movement was unable to hold its ground. The US Dollar Index (DXY) is still favoring the greenback, and any potential rebound in silver will likely face resistance from a currency market that remains biased towards dollar appreciation.

Friday's jobs report is expected to be a key catalyst for silver prices, with a weaker reading potentially putting pressure on Treasury yields and bringing buyers back into the market. A firm report, however, would likely keep the rate relief trade intact and leave Tuesday's low of $60.30 exposed.