The price of silver sharply declines from $25.00 per ounce as the US PCE price index continues to remain stable.

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• Silver price corrects sharply from $25.00 as the US PCE price index remains sticky.

The pair currently trades last at 24.601.

The previous day high was 25.02 while the previous day low was 24.53. The daily 38.2% Fib levels comes at 24.72, expected to provide resistance. Similarly, the daily 61.8% fib level is at 24.83, expected to provide resistance.

Silver price (XAG/USD) faces selling pressure near the psychological resistance of $25.00 as the US Bureau of Labor Statistics reported that the Personal Consumption Expenditure (PCE) price index remained stubborn in July.

The monthly headline and core PCE grew at a stable pace of 0.2%. Also, the annual headline and core PCE accelerated marginally to 3.3% and 4.2% as expected by market participants.

Apart from that, the US Department of Labor reported weekly jobless claims data. For the week ending August 25, individuals claiming jobless benefits dropped to 228K vs. expectations of 235K and the former reading of 232K.

The US Dollar Index (DXY) holds gains around 103.60 and is looking to extend gains further as persistent PCE data offsets the impact of the softer labor demand reported by US Automatic Data Processing (ADP) for August, released on Wednesday.

After Fed’s preferred inflation measure, investors shift focus to the US Nonfarm Payrolls (NFP) data for August, which will be published on Friday at 12:30 GMT. As per the expectations, US labor formed witnessed a fresh addition of 170K payrolls, lower than July’s reading of 187K. The Unemployment Rate is seen unchanged at 3.5%. Apart from that, Average Hourly Earnings data will be keenly focused.

Silver price is approaching the horizontal resistance plotted from July 20 high around $25.27 on a two-hour scale. Upward-sloping 50-period Exponential Moving Average (EMA) indicates that the upside momentum is extremely bullish.

The Relative Strength Index (RSI) (14) oscillates in the bullish range of 60.00-80.00, which indicates that the upside momentum is active.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 24.58 at the time of writing. Pair opened at 24.61 and is trading with a change of -0.12 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 23.36, 50 SMA 23.6, 100 SMA @ 23.96 and 200 SMA @ 23.4.

The previous day high was 25.02 while the previous day low was 24.53. The daily 38.2% Fib levels comes at 24.72, expected to provide resistance. Similarly, the daily 61.8% fib level is at 24.83, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 24.42, 24.24, 23.94
• Pivot resistance is noted at 24.91, 25.2, 25.39

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