Silver prices showed a moderate decline, retreating from local highs of August 17, after the publication of macroeconomic statistics in the US. In particular, consumer inflation in August added 0.1% with an expected decline by a similar amount, while CPI excluding Food and Energy accelerated from 0.3% to 0.6%, which turned out to be significantly worse than neutral forecasts. In annual terms, the value adjusted from 8.5% to 8.3%. Thus, the US Federal Reserve has so far managed to only slightly slow down inflation, which raises many questions about the prospects of the current "hawkish" rate of the regulator. Currently, about 82% of analysts expect that at the September 21 meeting, the interest rate will be increased by 75 basis points to 3-3.25% per annum.
Meanwhile, the downtrend in demand for the precious metal continues. According to the latest report from the US Commodity Futures Trading Commission (CFTC), last week the number of net speculative positions corrected to -12.8 thousand from -8.3 thousand earlier. "Bears" still hold the lead in current transactions: buyers hold 8.535 thousand contracts while sellers hold 25.489 thousand. This week, the "bulls" have added just 40 contracts to their positions, while the "bears" have reduced the number of contracts by 673.
Bollinger Bands in D1 chart show insignificant growth. The price range is expanding; however, it failed to catch the development of "bullish" trend until yesterday's decline. MACD grows, preserving a stable buy signal (located above the signal line). The indicator line is also trying to consolidate above the zero level. Stochastic, on the contrary, having approached its highs, reversed into a downward plane, indicating the potential for the development of a corrective decline in the ultra-short term.
Resistance levels: 19.50, 19.74, 20.00, 20.48. | Support levels: 19.00, 18.68, 18.41, 18.00.