Silver prices jumped more than 1.40 percent on Wednesday following cooler-than-expected US inflation data that signals the Federal Reserve is making progress toward its 2 percent inflation target. The precious metal traded at $65.53 after hitting an intraday peak of $66.80, with technical indicators now pointing toward a test of the 200-day simple moving average as bullish momentum builds.
The Wednesday rally comes as softening inflation readings reduce pressure on the Fed to maintain aggressive monetary policy, typically supporting precious metals that benefit from lower real yields. Traders and brokers should monitor whether silver can sustain gains above current levels, as a break above the 200-day SMA could trigger additional technical buying from momentum-focused strategies. The move also reflects renewed safe-haven demand and industrial metal strength as economic data suggests a potential soft-landing scenario.
FXnCO Insight
Watch the 200-day SMA as the critical technical level for silver continuation—a confirmed break above could offer short-term long opportunities with stops below recent session lows.
Source: FXStreet