Last Updated on 12/08/2026
- Silver advances toward $65.40 as investors await the release of July US CPI figures.
- Economists forecast annual headline and core inflation to increase by 3.4% and 2.5%, respectively.
- Crude oil prices remain elevated amid a significant decline in shipping activity through the Strait of Hormuz.
Silver (XAG/USD) climbed about 1.1% to trade near $65.40 during Wednesday’s Asian session, supported by investor caution ahead of the release of the US Consumer Price Index (CPI) report for July at 12:30 GMT.
Market forecasts suggest that annual US headline inflation eased to 3.4% from 3.5% in June. Core CPI, which excludes food and energy prices, is also expected to slow to 2.5% year-over-year from 2.6% previously. On a monthly basis, headline CPI is projected to rise 0.1%, while core inflation is anticipated to increase 0.2%.
The inflation figures are expected to provide fresh insight into the Federal Reserve’s policy path. In the Fed’s most recent policy statement, Chair Kevin Warsh highlighted persistent upside inflation risks and reiterated the central bank’s commitment to returning inflation to its 2% objective.
However, silver’s gains could be restrained by the continued surge in oil prices, driven by supply concerns linked to escalating tensions in the Middle East.
Data from Kpler showed that vessel traffic through the Strait of Hormuz—an essential route for nearly one-fifth of global energy shipments—fell to only six ships on August 10, compared with an average of around 11 over the previous ten days. The figure remains dramatically below pre-conflict levels of roughly 130–140 vessels per day, according to Reuters.
Separately, CME Group announced on Tuesday that it will introduce 24-hour trading for its 100-ounce silver futures contract starting in September, following strong demand for its recently launched 1-ounce gold futures contract, Reuters reported.
Silver Technical Analysis
On the daily timeframe, XAG/USD is trading around $65.53, maintaining its upward momentum above the 20-day Exponential Moving Average (EMA) near $61.28, a signal that the short-term bullish trend remains intact.
The metal has continued to move higher after breaking out of its previous consolidation range. Meanwhile, the 14-day Relative Strength Index (RSI) stands at 61.21, indicating positive momentum while remaining below overbought territory, suggesting there is still room for further gains.
From a technical perspective, initial support is located at the 20-day EMA around $61.28. This level serves as a key foundation for the current recovery and could attract buying interest if prices retreat. On the upside, a decisive break above the August 10 peak at $66.59 may open the door for a rally toward the June 17 high of $71.56.
Leave a Reply