Silver prices (XAG) saw a rebound on Friday, but the recovery remains constrained by a robust US dollar and lingering inflation worries. The upcoming US Consumer Price Index (CPI) report is critical, as it will influence expectations for a potential December rate hike. This, in turn, could impact the dollar, Treasury yields, and silver prices.
The performance of silver relative to gold has been underwhelming, suggesting caution for investors. A correction in the US dollar and a decisive break above $65 in spot silver could bolster the rebound. The article highlights the key factors driving silver's outlook, including technical levels and the dollar's strength.