Silver Falters on Delayed US-Iran Deal Timeline, Eyes US CPI Report
Silver prices trimmed some gains on Tuesday after the anticipated timeline for a US-Iran deal passed without an announcement, despite earlier expectations that a agreement would be reached. The Treasury Secretary confirmed that an Iran deal could have been announced as soon as yesterday and would have included the reopening of the Strait of Hormuz.
However, hopes for a deal will likely keep the market supported for now unless there is another escalation. The next test for silver prices will come next week with the release of the US CPI report, which will be critical for the September FOMC decision and the Jackson Hole Symposium. A hot report could trigger a selloff in silver, while a soft report would reduce the risk of Fed tightening and give silver another boost.
On the technical side, silver's price action on the daily chart shows that it has pulled back to the major downward trendline, where there is also a confluence of the key swing high at $63.20. This level could be technically strong resistance for sellers, while buyers will want to see the price break higher to increase bullish bets into the $71.55 level.