The silver price showed high volatility amid the release of the inflation data.
The U.S. president commented on the renewed data. Joe Biden said that the government had made some progress in reducing price pressure. The report, as he noted, showed certain success in the fight against rising prices, with the 12-month inflation rate being the lowest since May 2021. These positive figures followed last week's news that the U.S. labor market remains robust. Inflation is now down 45% from its summer peak. Gasoline prices are down more than $1.40 from the summer, and grocery prices in March fell for the first time since September 2020. Prices of used cars, smartphones and other electronics has also declined over the past few months. While inflation is still too high, this progress is providing more benefits for workers: wages are higher now than they were nine months ago, after accounting for inflation.
The U.S. government continues to work on the reduction of household expenditures. The measures include the prescription drug costs reduction for elderly people, setting a $35 price limit for insulin, and allowing Medicare to negotiate lower prices. The president's Investing in America program is designed to create good jobs for people across the country and to build a robust economy over the long term. As the president has said, it’s important to build on the progress with policies to grow the economy, lower costs, create jobs, and reduce the deficit.
The data showing lower inflation and improving economic conditions in the U.S. caused price movements, especially in silver. The U.S. government program is aimed to cut costs and create new jobs. This could lead to economic growth and higher demand for silver in the long term.
The silver price is forming an uptrend on the H4 timeframe.
On the H1 timeframe, the price is forming the third ascending wave at the point where it broke the top of the first wave at 25.130. It indicates a probability of the uptrend.
Signal:
Silver's short-term outlook is to buy.
The target is at the level of 26.60.
Part of the profit should be fixed near the level of 25.95.
A Stop-loss should be placed at the level of 24.80.
The bullish trend is of a short-term nature, so it is suggested to limit the trading volume to no more than 2% of your capital.
This content is for informational purposes only and is not intended to be investing advice.
