The dollar's solid performance on Monday reflects increased market expectations for Wednesday's October inflation data. Economists expect the CPI to rise 0.2% month-on-month, or 2.5% annually, and core inflation to remain at 3.3%. The producer price index is expected to rise 0.3% month-on-month, or 2.3% annually. Robust inflation data could boost the dollar and reduce the likelihood of a December interest rate cut, further increasing pressure on precious metals. Several Fed officials, including Chairman Jerome Powell, are scheduled to speak this week, which is expected to provide further insight and potentially hint at future policy moves.
China's latest economic data showed a slowdown in consumer prices and continued deflationary pressure on producer prices, highlighting weakness in demand. Although the Chinese government has implemented various stimulus measures, their effectiveness in boosting demand for primary products remains limited. Following upcoming reports on China's retail sales and industrial production, the market will be closely monitoring any signs of demand recovery, which could have a significant impact on silver and gold prices. A slowdown in Chinese demand could weigh on both metals, especially since they often move at the same time.
Market Prediction: Bearish Outlook for Silver if Key Supports Break
If silver fails to sustain support at $30.67, silver’s bearish trend is likely to continue. Failure at this level could push the price towards $28.56, where it could trigger further declines. However, a strong rebound above the 50-day moving average could send silver towards $32.49. Short-term sentiment remains bearish, with traders closely monitoring inflation statistics and Fed guidance, as these factors have a significant impact on silver's immediate trading path.
