Silver Consolidates Bullishly After PCE
Silver prices (XAG/USD) held steady following the release of the US core PCE, which met expectations (0.3% m/m; 2.9% y/y), holding in the $38.9–$39.2 per ounce range on Friday. This “inline” result eased concerns about higher inflation, resulting in stable, slightly weaker, US dollar and Treasury yields; a combination that typically supports non-yielding metals like silver. Today's performance also maintained silver's weekly gains, supported by the gold rally and safe-haven demand.
On the policy front, the in-line PCE print kept bets for a 25 bps Fed rate cut in September high. Dovish comments from officials like Christopher Waller—who left room for further cuts in the next 3–6 months—also supported sentiment. At the same time, market concerns about the Fed's independence following the legal dynamics surrounding Lisa Cook increased protective bids, which positively impacted the precious metals complex despite relatively solid US economic data.
Technically, the $39.20–$39.50 area represents initial resistance, a breach of which could trigger a test of $40.00. On the downside, $38.60 and then $38.20 represent the closest support; a clear break below opens up room for deeper consolidation. Looking ahead, market participants will be monitoring Fed officials' comments, silver ETF flows, and next week's US jobs data for further volatility triggers. As long as real yields remain benign and the USD doesn't strengthen sharply, silver's short-term bias is likely neutral-positive.
Source: Newsmaker.id
