Silver price prepares to finish the week with losses of 0.64%.

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• Silver price prepares to finish the week with losses of 0.64%.
• Fed’s Chair Powell reiterated the US central bank goal of bringing inflation down, even if it generates “pain to households and businesses.”
• Upbeat US economic data weighed on the white metal prices, plummeting more than $0.30.

The pair currently trades last at 18.86.

The previous day high was 19.4 while the previous day low was 19.11. The daily 38.2% Fib levels comes at 19.29, expected to provide resistance. Similarly, the daily 61.8% fib level is at 19.22, expected to provide resistance.

Silver price tumbles from around weekly highs around $19.42, back below the $19.00 figure after Fed’s hawkish rhetoric finally takes its toll on the market’s erroneous perception of a Fed pivot. That, alongside positive US economic data, underpinned the greenback, a headwind for the white metal price. Therefore, XAG/USD is trading at $18.86 a troy ounce at the time of writing.

US equities are plunging after Jerome Powell’s saying that the Fed’s primary goal is bringing inflation to its 2% goal even if it spurs slow growth and “pain to households and businesses.” He added that “without price stability, the economy does not work for anyone.”

The US Dollar Index, a gauge of the buck’s performance against a basket of six currencies, gains more than 0.30%, set to finish the week above the 108.800 figure, while US Treasury bond yields are climbing, led by the short-end of the curve, with 2s up two and a half bps, at 3.398%. In the meantime, the US 10-year benchmark note sits at 3.039%, almost flat.

In the meantime, the US Bureau of Economic Analysis reported that inflation in the US measured by the PCE slid to 6.3% YoY, less than estimates of 7.4%. Excluding volatile items like food and energy, the so-called Core PCE slowed to 4.6% YoY, lower than expectations of 4.7%.

Later, the University of Michigan’s Consumer Sentiment final release for August arrived at 58.2, upward revised from 55,1 preliminary reported, up from estimations of 55.2. Even though it’s a good reading, inflation expectations were the main spotlight. Americans expect inflation to top around 4,8% in the one-year horizon vs. 5% preliminary. Inflation is estimated to peak within five years at around 2.9% vs. 3% preliminary.

In the next week, the US economic calendar will feature US CB Consumer Confidence, ISM Manufacturing PMI, the ADP Employment report and the Nonfarm Payrolls.

Technical Levels: Supports and Resistances

EURUSD currently trading at 18.86 at the time of writing. Pair opened at 19.24 and is trading with a change of -1.98 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 19.95, 50 SMA 19.83, 100 SMA @ 21.27 and 200 SMA @ 22.48.

The previous day high was 19.4 while the previous day low was 19.11. The daily 38.2% Fib levels comes at 19.29, expected to provide resistance. Similarly, the daily 61.8% fib level is at 19.22, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 19.1, 18.96, 18.8
• Pivot resistance is noted at 19.4, 19.55, 19.69

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