The price of silver, symbolized by XAGUSD, remains unstable at approximately $23.00 while attention turns towards the August release of US Consumer Price Index (CPI) data.

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• Silver price juggles around $23.00 as the focus shifts to the US CPI data for August.

The pair currently trades last at 23.003.

The previous day high was 23.22 while the previous day low was 22.91. The daily 38.2% Fib levels comes at 23.1, expected to provide resistance. Similarly, the daily 61.8% fib level is at 23.03, expected to provide resistance.

Silver price (XAG/USD) trades back and forth around $23.00 in the New York session. The white metal has remained inside the woods for the past four trading sessions as investors have been sidelined ahead of the United States inflation data for August, which will be published on Wednesday at 12:30 GMT.

The S&P500 has opened on a bearish note as investors remained cautious about the US Consumer Price Index (CPI). Investors remain worried about the inflation outlook due to stronger wage growth and a steady labor market. Inflation in excess of the desired rate of 2% seems most persistent and won’t be easily contained by the Federal Reserve (Fed). This would keep hopes of one more interest rate increase from the Fed alive.

The US Dollar Index (DXY) recovered significantly to near 104.90 but is struggling to extend the upside as investors await the US CPI data for further guidance. As per the estimates, US headline inflation is seen expanding at a stronger pace of 0.6% due to recovered gasoline prices. The core CPI that doesn’t inculcate volatile oil and food prices is expected to grow at a steady pace of 0.2%.

Silver price remains sideways in a range of $22.80-23.20 from the past four trading sessions ahead of the US inflation data. The white metal demonstrates a volatility squeeze, which is being followed by a breakout in the same. The 100-period Exponential Moving Average (EMA) at $23.17 continues to act as a major barricade for the Silver price bulls. Horizontal support is plotted from August 15 low at $22.23.

The Relative Strength Index (RSI) (14) skids into the bearish range of 20.00-40.00, which indicates that the bearish impulse has been triggered.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 22.93 at the time of writing. Pair opened at 23.08 and is trading with a change of -0.65 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 23.58, 50 SMA 23.74, 100 SMA @ 23.82 and 200 SMA @ 23.47.

The previous day high was 23.22 while the previous day low was 22.91. The daily 38.2% Fib levels comes at 23.1, expected to provide resistance. Similarly, the daily 61.8% fib level is at 23.03, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 22.92, 22.75, 22.6
• Pivot resistance is noted at 23.24, 23.39, 23.56

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