The post AI predicts Silver price following CPI data release appeared on BitcoinEthereumNews.com.

As financial markets brace for the release of the U.S. Consumer Price Index (CPI) data on August 14, silver prices are coming under increasing pressure.  This reflects a blend of economic uncertainties and wavering industrial demand, leaving silver hovering around the $27.45 mark, just below the critical resistance level of $27.50. Market participants are closely monitoring inflation metrics, particularly the CPI and the upcoming Producer Price Index (PPI), to gauge the Federal Reserve’s next steps.  A higher-than-expected CPI reading could signal entrenched inflationary pressures, potentially prompting the Fed to delay interest rate cuts. Such a scenario would likely weigh on silver, as higher interest rates diminish the appeal of non-yielding assets like silver. Conversely, if the CPI data shows that inflation is slowing down, it might increase the chances of the Federal Reserve cutting interest rates soon. This would likely provide a tailwind for silver, making it more attractive to investors seeking refuge amid economic uncertainty.  Additionally, lower interest rates would likely lead to a decline in the U.S. Treasury bond yields, further enhancing silver’s appeal as an alternative investment. Industrial demand and geopolitical tensions Beyond the CPI data, silver’s price dynamics are heavily influenced by industrial demand, particularly from major economies like the U.S. and China.  Recent data suggests a cooling in industrial activity in both countries, which could limit silver’s upside potential. According to sources, the U.S. has seen a slowdown in manufacturing activity, while China’s economic recovery remains fragile, with its manufacturing sector showing signs of weakening. This dual pressure from reduced industrial demand and potential shifts in monetary policy creates a challenging environment for silver.  Investors should be cautious, as any further deterioration in industrial demand could cap silver’s gains, even if the CPI data supports a more dovish Federal Reserve.  Additionally, if U.S. Treasury yields…

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Filed under: News - @ August 11, 2024 2:06 pm