AUSFOREX official website: CPI data helps silver break the 200-day moving average. What's the next step?

On Wednesday (January 15), silver prices rose in the European session, slightly above the key 200-day moving average of $29.97.AUSFOREX official websiteAnalyzing this level is a key resistance level for the market, a breakout of this level could spark new buying interest. After $29.97, the next target is at $30.54, where the 50-day moving average intersects the short-term pivot point.

A deal at $30.54 would set the stage for a potential rise in silver prices towards $32.33, a major technical milestone for silver prices.

On the downside, failure to break through resistance could lead to a pullback. A fall below $29.70 could retest the $28.74 support level, which traders are watching closely.

Will a weaker dollar and low yields support silver?

The modest rise in silver prices was underpinned by a weaker dollar and falling Treasury yields. The 10-year Treasury yield fell 2 basis points to 4.771 per cent, retreating from recent highs and the dollar index falling 0.1 per cent. These moves have made silver more attractive to international investors.

Fears about inflation were eased on Tuesday by a weaker-than-expected rise in wholesale prices, a development that helped cool Treasury yields and supported silver prices.

How will inflation data affect silver prices?

Spot silver daily chart

The Consumer Price Index (CPI) data report showed inflation growing at an annual rate of 2.9%, in line with expectations. Core CPI grew at an annual rate of 3.2%, below expectations of 3.3%. Weaker-than-expected data could strengthen the case for the Federal Reserve to cut interest rates, a situation that favors silver.

For traders, the next few trading days could reveal whether silver is ready for a breakout or a deeper pullback. Keep an eye on technical levels and macroeconomic signals for clarity on silver's next move.

At 21:57 Beijing time, spot silver was reported at $30.250 per ounce, an increase of 1.26%.