XAGUSD Silver Prices
Silver price is down by more than 1% even as the US dollar decline continues. The white metal is trading at $24.20, which is in the same range where it has been in the past few days. Gold has also dropped while copper and platinum are in an upward trend.
The metal, which has a large industrial use, is possibly reacting to the weak inflation data from China. In a report earlier today, the country’s bureau of statistics said that the overall consumer price index dropped by an annualised rate of 0.5% in November. That was after a 0.5% jump in the previous month.
Similarly, the CPI dropped by 0.6% on a month-on-month basis while the producer price index (PPI) fell by 1.5%.
Still, there are several catalysts left for silver. For example, demand for the metal is set to increase as more countries embrace clean technology. Also, the weaker US dollar and low-interest rates are key catalysts.
On the daily chart, we see that silver price has been in a tight range recently. It is between the range of $21.68 and $26. Also, the price is above the 15-day and 25-day exponential moving averages. Therefore, while the price will likely remain at the current range in the near term, a bullish break-out is possible. This will be confirmed if it manages to move above $26. On the flip side, a move below $21.68 will invalidate this trend.
