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Silver prices (XAG/USD) rebounded on Thursday as the US Dollar weakened following the release of the latest US Personal Consumption Expenditures (PCE) data. The precious metal hit a one-month low near $71.79 earlier in the day before recovering to trade around $73.41. The PCE data, a key inflation indicator for the Federal Reserve, showed mixed results, reducing pressure on the USD and allowing silver to find temporary support. Technical analysis suggests a bearish structure remains intact, with critical resistance at $73.40 and support near $71.79.
The USD's performance is crucial for silver prices, as a weaker dollar typically boosts demand for non-yielding assets like gold and silver. Traders are closely monitoring whether the current rebound will hold or if the bearish trend will resume. The PCE data's mixed outcome adds uncertainty, with investors weighing the Fed's potential rate decisions against broader economic indicators. This volatility creates opportunities for range-bound trading strategies around key levels.
For markets, the focus now shifts to upcoming central bank decisions and inflation data from major economies. If the USD continues to weaken, silver could test higher levels, but a breakdown below $71.79 would confirm a deeper bearish phase. Investors should also watch for any signs of a broader commodities rally driven by risk-on sentiment or geopolitical tensions. The interplay between the USD and precious metals will remain a key dynamic in the near term.
