Silver is surging from the key $22 support, aided by a decline in inflation. Yesterday, the US Consumer Price Index (CPI) dropped to 3.2% on a yearly basis, and monthly, it fell slightly, less than 0.1%. Core inflation also decreased to 0.2% MoM, an ideal level for the medium term, and on a yearly basis, it fell to 4%. With inflation cooling down, silver has found room for more upside and has broken the one-month downtrend.
The $22.85-$23 zone could become the primary support for the remainder of November. If it holds, silver might attempt to breach the $23.36 and $23.75 resistances in the coming days. In the event of a breakout, the $24.20-$24.40 zone could be the next target for upward moves. Silver traders should also closely monitor geopolitical risks. With the increased likelihood of a stopgap bill agreement, gold and silver are rapidly losing support from market risks. The crucial question remains: Will the dollar index and US bond yields retreat enough to offset the decreasing risks, particularly for gold and, due to high correlation, for silver as well?
(XAGUSD 4H Chart)
