The dollar’s steady performance on Monday reflects the market’s heightened expectations for Wednesday’s October inflation data. Economists expect the CPI to rise 0.2% month-on-month and 2.5% annually, with core inflation remaining at 3.3%. The producer price index is expected to post a monthly increase of 0.3% and an annual gain of 2.3%. Strong inflation data could boost the dollar, reducing the likelihood of a rate cut in December and increasing pressure on precious metals. Additional insights are expected as several Federal Reserve officials, including Chairman Jerome Powell, are scheduled to speak this week, which could potentially signal future policy moves.
China’s latest economic figures show declining consumer prices and persistent deflationary pressures on producer prices, underscoring weak demand. Although Beijing has introduced several stimulus measures, their impact on boosting commodity demand remains limited. With upcoming reports on China’s retail sales and industrial production, markets will be closely watching for signs of demand recovery, which would significantly impact silver and gold prices. A slowdown in Chinese demand could weigh on both metals, especially since they often move together.
Market Forecast: Bearish outlook for silver as key support falls away
Silver’s bearish tone is likely to continue if the metal fails to hold the $30.67 support. A failure at this level could send prices plummeting towards $28.56, where further declines could be triggered. However, a strong bounce above the 50-day moving average could lead to silver rallying towards $32.49. Near-term sentiment remains bearish, with traders keeping a close eye on inflation data and Fed guidance as these factors will heavily influence silver’s immediate trading path.