Silver price is steadily trading above the crucial resistance-turn-support level of $24 amid the rising concerns on inflation. US CPI numbers released on Wednesday showed that consumer prices rose at the fastest rate recorded in over 30 years.
On a year-over-year basis, consumer prices rose by 6.2% compared to the forecasted 5.8%. With the exclusion of the volatile food and energy components, core CPI was up by 4.6% YoY. Based on its status as a hedge against inflation, silver will likely hold steady above $24 as investors worry about the economy overheating.
Silver price forecast
The precious metal has bounced off the support zone of 24.50 after dropping from a high of 25.12 in the previous session. On Wednesday, it surged to its highest level since early-August.
Currently, it is up by 1.22% at 24.94. On a two-hour chart, it is trading above the 25 and 50-day exponential moving averages.
In the short term, I expect it to trade steadily above the crucial support level of 24 as concerns over rising inflation heighten. At its current level, the support zone to look out for will be along the 25-day EMA at 24.53. A pullback past that point will have the bulls defending the key level of 24 as the metal finds support at 24.05.
On the upside, silver price may continue to experience resistance around 25. Past Wednesday’s high of 25.12, the bulls’ next target will be August’s high of 25.70.