Gold is traded in the vicinity of his record high in $ 2,954.96, supported by a weaker American dollar and strong inflow into ETFs supported by Bullion. If gold breaks this resistance, it can gather in the direction of the $ 3,000, which could also increase silver prices per association. On the other hand, if gold falls under its support at $ 2,909.64, this can cause a bearish sentiment in the wider market for precious metals, which may also weigh on silver.
PCE report holds the attention of the market
The market is braced for the release of Friday of the prize -index of the Prece -Index of January Personal Consumptions (PCE), the preferred factories of the Federal Reserve. With the expectations of an increase of 0.3% monthly-over month and annual profit of 2.4% (headline) and 2.6% (core), this report can seriously influence the monetary policy of the FED. If the data suggests persistent inflation, this can lead to higher treasury yields, which can put non-revenue assets such as silver under pressure. Conversely, a softer inflation print can reduce the fears of speed increase, making silver prices possible.
This week also includes speeches from Federal Reserve officials, who can offer instructions on upcoming rate decisions. Any indication of long -term high rates or delayed cutbacks can strengthen the dollar and increase the Treasury yields, a headwind for silver. The bond market, which has shown signs of stability, can respond strongly to the PCE data, which influences the attraction of Silver as a safe port active.
Market forecast: Silver’s short -term prospects
Silver’s direction this week will largely depend on his assets to keep above $ 32.53. A persistent movement could focus on $ 33.39, especially if gold continues to gather or if the expectations of inflation data temperatures accelerate the expectations of the increases. However, a break under $ 31.81 would probably cause a new sales pressure. With important US economic data and Fed speak on tap, traders must prepare for potential volatility and adjust their positions accordingly.