Weekly technical data highlights defined levels critical to silver’s next move. The resistance at $32.26 and $32.89 represents formidable barriers, requiring a weekly close above these levels to trigger a bullish breakout. Conversely, immediate support remains anchored at $29.64, with a failure here potentially opening the door to a deeper decline towards $26.47-$26.02.
Silver’s performance reflects the indecisiveness of the market, with neither buyers nor sellers able to take control. This stalemate is keeping traders on edge as they wait for catalysts that could tip the balance.
CPI data can provide a breakthrough
Next week’s Consumer Price Index (CPI) report, which is expected to rise 2.7% year-on-year, could be decisive. A weaker-than-expected rate could weaken the dollar, giving silver the fuel it needs to challenge $32.26 and potentially break $32.89. However, a higher inflation rate threatens to further strengthen the dollar, pushing silver to lower support levels.
With the December 17-18 Federal Reserve meeting looming, traders are preparing for potential volatility. While rate cuts are widely expected, Powell’s comments suggest a cautious approach that could keep silver’s gains in check unless a mild surprise emerges.
Outlook: Silver poised for a decisive breakout as key catalysts emerge
The $30.44 pivot remains the critical level for determining silver’s direction. Continued weekly strength above this level could open the way to $32.26 and higher, especially if the dollar eases. On the other hand, failure to maintain this range risks a pullback towards $29.64 or even $26.47 if bearish sentiment prevails.
As CPI data and Fed policy announcements approach, silver’s multi-week consolidation is about to end, with significant price moves likely ahead.