#XAGUSD @ 22.731 Silver price remains depressed below $23.00 despite sticky US core PCE data.

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• Silver price remains depressed below $23.00 despite sticky US core PCE data.

The pair currently trades last at 22.731.

The previous day high was 23.14 while the previous day low was 22.44. The daily 38.2% Fib levels comes at 22.71, expected to provide support. Similarly, the daily 61.8% fib level is at 22.88, expected to provide resistance.

Silver price (XAG/USD) witnesses some selling pressure as the United States Bureau of Economic Analysis (BEA) has reported that the core Personal Consumption Expenditure (PCE) price index for September remained in line with expectations.

Federal Reserve’s (Fed) preferred inflation gauge rose at a higher pace of 0.3% as expected against a nominal increase of 0.1%, recorded in August. The annual core PCE inflation data decelerated to 3.7%, in line with estimates, from the August reading of 3.9%.

The US Dollar Index (DXY) drops sharply as core PCE inflation is consistently declining while the Silver prices remain under pressure due to a sharp rebound in 10-year US Treasury yields to near 4.87%. Going forward, investors will shift focus to the Fed’s monetary policy.

As per the CME Fedwatch tool, traders see the Fed keeping interest rates unchanged at 5.25-5.50% almost certain. The odds of one more interest rate increase in any of the two remaining monetary policy meetings in 2023 have dipped sharply to 20%.

Fed policymakers hope that high US Treasury yields are sufficient to dent overall spending and investment. Cleveland Fed Bank President Loretta Mester said last week that higher bond yields are equivalent to one interest rate hike of 25 basis points (bps).

The blockbuster Q3 Gross Domestic Product (GDP) report, released on Thursday, indicated that investments by businesses were dipped for the first time in two years due to higher borrowing costs. However, major growth was contributed by robust consumer spending and higher residential investment.

Silver price continues to defend the support zone plotted in a range of $22.40-22.56 on a two-hour scale. The 50-period Exponential Moving Average (EMA) continues to act as a barricade for the Silver price bulls.

The Relative Strength Index (RSI) (14) oscillates in the 40.00-60.00 range, which indicates that investors await a potential trigger for building fresh positions.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 22.74 at the time of writing. Pair opened at 22.79 and is trading with a change of -0.22 % .

The pair is trading above its 20 Daily moving average @ 22.23, below its 50 Daily moving average @ 22.96 , below its 100 Daily moving average @ 23.26 and below its 200 Daily moving average @ 23.3

The previous day high was 23.14 while the previous day low was 22.44. The daily 38.2% Fib levels comes at 22.71, expected to provide support. Similarly, the daily 61.8% fib level is at 22.88, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 22.44, 22.1, 21.75
• Pivot resistance is noted at 23.14, 23.49, 23.84

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