🥈Precious metals prices continue to rise as investors digest US CPI report
Precious metals prices continue to move sharply higher as investors rush for safe haven assets amid increasing concerns regarding rising inflation and global energy crisis. During today's session gold price rose 2.2% to $1,794 per ounce, while silver added more than 3.0% and is trading around $23.15 per ounce. The latest US CPI reading showed that inflation remains elevated and will likely reinforce the Fed’s stance to start tapering its asset purchasing program. Some economists believe that such a decision by the central bank, combined with the persistent energy crisis, which negatively affects the production of many goods, could lead to stagflation and silver and other precious metals tend to do well in such an environment. Additionally weaker dollar and lower treasury yields positively affect silver prices. during today's session.
SILVER - price broke below major support at $22.00 at the end of September, however sellers failed to uphold momentum and price rebounded. During today's session silver price broke above long-term downward trendline and is heading towards major resistance at $23.71 which coincides with 200 SMA (red line). Should a break higher occur, then the next target for buyers is located around $24.90 and is marked by an upper limit of 1:1 structure and previous price reactions. Source: xStation5