What economic data are silver traders looking at?
Silver investors are closely monitoring the Producer Price Index (PPI) report for October, which is expected to reflect a monthly increase of 0.2%. This data, along with comments from Federal Reserve officials later today, will likely impact silver prices by signaling potential changes in monetary policy. As Fed Chairman Jerome Powell is set to discuss the economic outlook, market participants are looking for clues about the likelihood of another rate cut in December. A softer stance from the Fed could ease pressure on silver by slowing the dollar’s advance and possibly sparking some recovery in metal demand.
Can Silver’s Next Level of Support Hold?
After the $30.12 break, the next critical support for silver is $29.71. A break below this level could pave the way for more downside, with the 200-day moving average of $28.67 serving as the next target. Resistance is around the 50% retracement level at $30.67, and the 50-day moving average at $31.55, which silver should reclaim for a meaningful recovery. For now, the technical outlook appears bearish as the market braces for further downturn, especially if the dollar maintains its strength.
Short-term forecast: will silver continue its decline?
Given the bearish momentum and external pressures, the short-term outlook for silver points to continued weakness. If prices fail to hold above $29.71, a move towards $28.67 could occur in the coming days. However, if silver manages to find support at $29.71, a small rally to retest resistance around $30.67 could be possible. Like gold, silver is also under pressure, and further negative consequences are likely if the US dollar remains strong and government bond yields remain high.