The price of silver (XAG/USD) recovered to $29.40 on Wednesday despite the strength of the US dollar. However, gains for the precious metal might be capped due to speculation that the US Federal Reserve (Fed) may delay rate cuts. Investors are expected to proceed with caution ahead of the release of the US Consumer Price Index (CPI) and the Fed’s interest rate decision later in the day.
From a technical perspective, silver maintains a bearish outlook on the 4-hour chart, remaining below the critical 100-period Exponential Moving Average (EMA). This downward trend is further supported by the Relative Strength Index (RSI), which is positioned in the bearish zone at around 43.0, indicating that the path of least resistance remains downward.
Key resistance for silver is identified at the $30.00 level, which coincides with the psychological mark and the 100-period EMA. A decisive break above this level could trigger a rally to $30.90, the upper boundary of the Bollinger Band. Additional resistance levels to watch include the June 7 high of $31.55 and the May 29 high of $32.31.
On the downside, initial support is found at the June 11 low of $29.04. Continued selling pressure below this level could push prices down to the lower limit of the Bollinger Band at $28.40. Further declines may target the next significant support level at the $28.00 round figure.
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