Silver Price Forecast: XAG/USD holds steady near $53 as US inflation data approaches

• With US CPI figures approaching, Silver holds near $53 in rangebound trading.
• Annual growth in both headline and core US CPI is forecast to accelerate.
• Falling oil prices leave the US Dollar under broad pressure.

The United States (US) Consumer Price Index (CPI) report for October is due at 13:30 GMT, keeping investors on hold. Against that backdrop, Silver (XAG/USD) is trading in a narrow range around $53.00 in Tuesday’s early European session.

Forecasts point to annual US headline CPI growth of 3.9% Year-on-Year (YoY), an acceleration from the previous 3.7% reading. Core CPI, which strips out volatile food and energy items, is likewise expected to pick up to 2.8% YoY from 2.6% previously.

Monthly price growth, meanwhile, remained moderate, with headline inflation at 0.3% and core inflation at 0.2%.

Expectations for Federal Reserve (Fed) interest rates are likely to be significantly influenced by the inflation release. According to the CME FedWatch tool, traders currently remain confident that the Fed will raise rates at its December policy meeting.

For assets that offer no yield, including Silver, higher Fed interest rates are unfavourable.

Falling oil prices have anchored global inflation expectations, putting pressure on the US Dollar ahead of the US CPI release. The decline in energy prices comes as hopes for a US-Iran deal have grown.

At the time of writing, the US Dollar Index (DXY) remains near 101.67, retaining the previous day’s losses. The index measures the Greenback against six major currencies.

Silver Remains Under Pressure Below Its 20-Day EMA

With XAG/USD at $53.39 on the daily chart, the near-term outlook remains bearish. Trading below the 20-day Exponential Moving Average (EMA) of $54.17 indicates that this dynamic resistance continues to restrain rallies. Meanwhile, a Relative Strength Index (RSI) reading of 43, below its midpoint, suggests selling pressure has persisted despite a modest bounce from recent lows.

The first upside hurdle is the 20-day EMA near $54.17. A daily close above it would be required to ease immediate bearish pressure and allow a more durable recovery. Below the current price, the daily chart offers no nearby confirmed support, leaving Silver vulnerable to renewed declines should sellers take control again. Traders are therefore likely to look to intraday price structure and earlier swing lows to assess where buying interest might reappear.

(The technical analysis of this story was written with the help of an AI tool. Know more.)