Silver holds above $69 as traders await US PCE inflation data

Silver (XAG/USD) traded near $69.40 an ounce in Asian hours Wednesday, up almost 1 percent, as traders positioned ahead of the US core Personal Consumption Expenditures inflation report due at 12:30 GMT.

Spot silver was at $69.17, holding above the 20-day exponential moving average at $65.12, with the 14-day relative strength index at 64.65, according to FXStreet data. The white metal drew support as oil prices eased on reports that Iran and Oman resumed talks to establish a temporary joint maritime corridor through the Strait of Hormuz, a chokepoint for roughly one-fifth of global energy supply, Bloomberg reported.

The core PCE gauge, the Federal Reserve's preferred inflation measure, is expected to hold steady at 3.3 percent year-over-year, with the monthly reading rising 0.2 percent, faster than June's 0.1 percent pace. A hotter print would reinforce the case for elevated rates, strengthening the dollar and pressuring non-yielding assets; a softer figure could revive rate-cut bets. Gold, silver's closest peer, held near $4,650 after touching a 15-week high of $4,697, with gold ETF inflows reaching 46.7 metric tons last week, the largest weekly total in 10 months.

June 17 High at $71.56 Is the Key Hurdle

Silver's near-term bias stays bullish while price extends above dynamic trend support, though the metal has lagged gold's defensive bid. The 200-day moving average sits overhead at $72.03, with an intermediate 50 percent level at $72.08; a failed test of Friday's high at $70.02 left the market range-bound, and a pullback could find value-seekers near the $66.29 retracement level.

The Jackson Hole Symposium begins early Thursday, with TD Securities expecting Fed Chair Kevin Warsh to improve communication with markets while forward guidance remains lacking. The bank reiterates that the Fed will stay on hold over its forecast horizon, arguing that if the central bank were to move this year, a hike is more likely than a cut. Silver's next directional test comes with the PCE release Wednesday, followed by Warsh's Friday remarks, which can move the dollar and yields that silver is trading against.

This article is for informational purposes only and does not constitute investment advice.