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Silver Price Forecast XAG/USD recovers to near $31.00 on sticky US inflation report

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  • Silver price bounces back to near $31.00 after the US inflation report, which showed that price pressures remain sticky.
  • Annual headline and core CPI rose by 2.6% and 3.3%, respectively, as expected.
  • The optimism on Trump trades will keep the Silver price edgy.

Silver price (XAG/USD) holds recovery to near $31.00 in Wednesday’s North American session after the release of the United States (US) Consumer Price Index (CPI) data for October. The Bureau of Labor Statistics (BLS) reported that price pressures remain sticky as the annual headline inflation accelerated to 2.6% from 2.4% in September.

The core CPI – which excludes volatile food and energy prices – rose in line with estimates and the former release of 3.3%. On month, the headline and core inflation grew expectedly by 0.2% and 0.3%, respectively.

Sticky price pressures are less likely to impact market speculation for Federal Reserve (Fed) interest rate cuts in December as officials are more worried about preventing job losses, with high confidence over inflation remaining on track toward the bank’s target of 2%.

After the US inflation data release, the US Dollar Index (DXY) drops slightly but clung to gains near 106.00. 10-year US Treasury yields slide to near 4.38%.

The overall outlook of the Silver price remains weak on so-called “Trump trades” as demand for those assets that are expected to perform better in US President-elected Donald Trump’s administration is upbeat.



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