Silver Price Forecast: XAG/USD consolidates around $22.70 ahead of US Inflation data

Source Fxstreet
  • Silver price trades lackluster around $22.70 as the focus remains on US inflation data.
  • Soft inflation data would uplift hopes of early rate cuts by the Fed.
  • Silver price is consistently facing pressure from a downward-sloping trendline placed from $24.60.

Silver price (XAG/USD) trades back and forth in a narrow range around $22.70 in the late Asian session on Tuesday. The white metal struggles for a direction as investors await the United States Consumer Price Index (CPI) data for January, which will be published at 13:30 GMT.

S&P500 futures remain on the backfoot in the Tokyo session, indicating a decline in the risk appetite of the market participants. The US Dollar Index (DXY) remains positive but struggles to extend upside above the crucial resistance of 104.25. 10-year US Treasury yields rise to 4.18%.

The US inflation data is expected to impact the outlook for interest rates. As per the CME Fedwatch tool, traders bet for a rate cut by 25 basis points (bps) in May. A significant decline in the inflation data would prompt expectations of an early rate cut by the Federal Reserve (Fed).

In the last monetary policy statement, Fed Chair Jerome Powell ruled out expectations of a rate cut in March as the central bank is unconvinced about inflation declining towards the 2% target. Also, Fed policymakers have not favored aggressive rate cuts as they could increase price pressures again.

Silver technical analysis

Silver price faces pressure while extending recovery above the downward-sloping trendline plotted from December 22 high at $24.60. The asset manages to sustain above the 50-period Exponential Moving Average (EMA) at $22.63, which indicates that the near-term outlook is bullish.

The 14-period Relative Strength Index (RSI) aims to move above 60.00. A bullish momentum would get triggered if the RSI (14) manages to do so.

Silver four-hour chart

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Markets in 2026: Will gold, Bitcoin, and the U.S. dollar make history again? — These are how leading institutions thinkAfter a turbulent 2025, what lies ahead for commodities, forex, and cryptocurrency markets in 2026?
Author  Insights
Dec 25, 2025
After a turbulent 2025, what lies ahead for commodities, forex, and cryptocurrency markets in 2026?
placeholder
ECB Policy Outlook for 2026: What It Could Mean for the Euro’s Next MoveWith the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
Author  Mitrade
Dec 26, 2025
With the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
placeholder
My Top 5 Stock Market Predictions for 2026Five 2026 market predictions written in a native, news-style voice: AI’s winners and losers, broader sector leadership, dividend demand, valuation cooling as the Shiller CAPE sits at 39 (Dec. 31, 2025), and quantum-computing bursts—while keeping all original facts and numbers unchanged.
Author  Mitrade
Jan 06, Tue
Five 2026 market predictions written in a native, news-style voice: AI’s winners and losers, broader sector leadership, dividend demand, valuation cooling as the Shiller CAPE sits at 39 (Dec. 31, 2025), and quantum-computing bursts—while keeping all original facts and numbers unchanged.
placeholder
Financial Markets 2026: Volatility Catalysts in Gold, Silver, Oil, and Blue-Chip Stocks—A CFD Trader's OutlookGet a comprehensive financial market 2026 outlook exploring key economic drivers, volatility catalysts in gold, oil and stocks, and what the evolving economic outlook means for cfd trading strategies and risk management on global markets.
Author  Rachel Weiss
May 15, Fri
Get a comprehensive financial market 2026 outlook exploring key economic drivers, volatility catalysts in gold, oil and stocks, and what the evolving economic outlook means for cfd trading strategies and risk management on global markets.
placeholder
Euro softens to near 1.1600 on US–Iran tensions The EUR/USD pair trades in negative territory around 1.1615 during the early Asian session on Monday. The Euro (EUR) extends the decline as the prolonged US-Iran conflict weighs on the riskier assets.
Author  FXStreet
5 hours ago
The EUR/USD pair trades in negative territory around 1.1615 during the early Asian session on Monday. The Euro (EUR) extends the decline as the prolonged US-Iran conflict weighs on the riskier assets.
Related Instrument
goTop
quote