Silver Price: Here’s Why $26.50 Remains the Level to Beat

Summary:

Silver price is trading sideways ahead of the US CPI numbers. Investors are also keen on Jerome Powell's testimony before Congress.

Silver price is trading sideways as investors focus on the US CPI data scheduled for release later in the day. Analysts expect consumer prices, with the exclusion of food and energy components, to have risen by 0.4% in June compared to 0.7% in the previous month. Higher-than-expected figures are likely to boost the US dollar while exerting pressure on silver price.

Investors looking to trade in silver are also keen on Jerome Powell’s testimony before the US Congress. The event, which is scheduled for Wednesday and Thursday, will avail further guidance on the central bank’s position on the monetary policy. Lawmakers are likely to focus on the central bank’s thinking regarding inflation, employment, and its plans on tightening its monetary policy.

Silver price technical outlook

Silver price has eased on its rally after rising from an intraday low of 25.86 on Monday. At the time of writing, the precious metal was up by 0.43% at 26.31. On a two-hour chart, it is trading above the 25 and 50-day EMAs. Notably, it is experiencing resistance at 26.35 while finding support at 26.13, where the two EMAs have converged.

I expect silver price to continue trading sideways as investors await further cues from the US CPI data later in the day. Subsequently, a move past the current resistance level at 26.35 will have the bulls eyeing the prior resistance level at 26.50 and last week’s high of 26.77. On the flip side, higher-than-expected CPI numbers may push the prices past the current support level of 26.13 to Monday’s low of 25.86.