Silver prices remain on a consolidation pattern for the second session as investors await the US retail sales data later in the day. The indicator of consumer spending will influence the prices of the precious metal, both as a safe haven and industrial commodity. In January, consumer spending rose by 5.3%, beating the predicted 1.1%. Analysts expect a decline of -0.5%, which will indicate slow economic growth.
Besides, today’s data on US industrial production and manufacturing production will define silver’s industrial demand. Experts expect February’s value of industrial production to have dropped by 0.3% amid inflation concerns.
Wednesday’s Fed decision will further offer direction to silver prices as a safe haven and hedge against inflation. investors will be keen on the tone that the Fed chair will use regarding inflation expectations and their new forecast on the US economic growth.
Silver prices technical outlook
On the four-hour chart, the silver price formed a double top pattern at $26.31 between March 11 and today. It also seems to be forming an ascending triangle pattern. In our free forex trading course, you will find that a double-top is usually bearish while an ascending triangle tends to be a bullish sign. The price is also along the 25-period weighted moving average (WMA).
Therefore, at this point, the outlook is neutral. A volume-supported move above $26.30 will mean that bulls have prevailed and that the metal will rise to $27.0. On the flip side, a drop below the diagonal line will mean that the double-top pattern has prevailed.
Silver price chart