Silver prices held steady above $32.70 on Wednesday as traders awaited key economic data from the Federal Reserve and the release of the Personal Consumption Expenditures (PCE) inflation figures. These upcoming events are expected to provide fresh cues for the direction of silver prices in the near term. At 12:44 GMT, silver was trading at $33.22, down $0.05 or -0.14%.
The Fed’s May meeting minutes and Friday’s PCE data are in focus as traders look for clarity on the central bank’s stance on interest rates. Officials, including New York Fed President John Williams, have emphasized the need to maintain a strong policy position if inflation begins to accelerate again. Higher interest rates for an extended period, along with rising Treasury yields, have put pressure on non-yielding assets like gold and silver, dampening speculative appetite in the short term.
Gold’s performance has also signaled hesitation among investors across the precious metals market. While gold has found support at $3277.91, its failure to break through $3310.48 indicates indecision.
Fed data’s impact on silver
This technical stalemate in gold is setting the tone for silver, which remains in a holding pattern pending macroeconomic clarity. The daily silver chart shows a tight range forming above the 50-day moving average at $32.70. A clear breakout above $33.70 would confirm renewed buying momentum and could push prices toward the resistance zone between $34.59 and $34.87.
However, if prices fail to hold above the 50-day moving average, silver could swiftly drop toward the 200-day moving average at $31.52, signaling a broader shift in sentiment. Silver’s near-term direction will largely depend on the upcoming U.S. inflation data and the Fed’s language. A dovish tone from the Fed or a soft PCE reading could reignite bids in both gold and silver, with $33.70 serving as the technical trigger for silver bulls.
Until then, the market is likely to remain in consolidation, with traders reducing exposure and focusing on headline risk. Investors should watch for volatility spikes tied to macro releases, as these will determine whether silver resumes its climb or corrects deeper.
