Silver rebounds 1.80% to the mid-$52.00s, but faces significant headwinds from a hawkish Federal Reserve and technical resistance at the $53.05 100-period SMA.
Tuesday's hotter-than-expected US CPI and Waller's comments putting a possible 50-bps December hike on the table strengthen the Dollar, a headwind for dollar-priced silver. Technically the metal is capped below the $53.05 100-period SMA after sliding from $53.70-$53.75, leaving rebounds vulnerable. A break above $53.92 or below $48.61 would change the picture.
Hotter-than-expected US consumer inflation reaffirmed bets for further Fed tightening, and Waller's comments led traders to price a possible jumbo 50-bps hike in December. A hawkish Fed acts as a tailwind for the Dollar, which in turn weighs on USD-denominated commodities.
Silver (XAG/USD) trades near the mid-$52.00s, gaining 1.80% on Wednesday despite a bearish technical outlook. The metal remains capped below the $53.05 100-period SMA as hotter-than-expected US inflation and potential 50-bps December rate hike bets strengthen the US Dollar.
A sustained move above the $53.00-$53.05 hurdle would target the 23.6% Fibonacci level at $53.92, with bigger barriers at $57.20 and $59.85.
The cycle low at $48.61; a break below it would likely open the door to a deeper corrective phase.
Hotter US inflation figures and a Fed official's remarks supporting a possible 50-basis-point hike in December pushed traders to price in more policy tightening, which supports the Dollar.