Silver prices rose early Tuesday, trading near the $60 level. The metal showed choppy movements as traders reacted to new inflation data and ongoing geopolitical concerns.
U.S. core Consumer Price Index (CPI) numbers came in at 0.0%, below the expected 0.2%. This suggests inflation may be easing. Weaker inflation data could reduce pressure on the Federal Reserve to raise interest rates quickly, which often supports precious metals.
Despite the inflation news, silver’s technical outlook remains weak. The 50-day Exponential Moving Average (EMA) is moving lower and sits just below the 200-day EMA. A move below the 200-day EMA would form a “death cross,” a negative signal for many long-term traders.
The $57 level has recently offered support for silver. A break below this point could open the way for further price drops. Geopolitical developments, particularly from the Middle East, also create uncertainty and have affected bond markets.