At 11:53 GMT, XAG/USD is trading $30.81, up $0.14 or +0.44%.
Today’s US Retail Sales report could be key in determining whether silver can maintain its recent momentum or provide short-term resistance.
Will Retail Sales Data Drive the Dollar and Cap Silver Up?
The US Retail Sales report, scheduled for release at 13:30 GMT, will be closely watched for its impact on the US dollar and precious metals. Core retail sales, excluding cars, are expected to rise 0.5%, while the broader retail sales figure is forecast at 0.6%.
Higher-than-expected results could strengthen the dollar, potentially putting pressure on silver prices. On the other hand, weaker sales could dampen economic confidence, weaken the dollar and strengthen silver’s safe-haven appeal.
The report’s release comes as markets assess weaker U.S. inflation data, rekindling hopes of Federal Reserve rate cuts later this year.
Will cooling inflation lead to a sharper interest rate cut?
On Wednesday, US core inflation data showed signs of easing. The core CPI rose 3.2% year-on-year in December, slightly below the forecast of 3.3%, while core monthly inflation grew just 0.2%, lagging expectations by 0.1 percentage point. The broader consumer price index rose 0.4% this month, in line with expectations.