SILVER PRICE ANALYSIS: XAG/USD CONSOLIDATES AROUND $23 AS FOCUS SHIFTS TO US INFLATION DATA

Silver price juggles around $23.00 as the focus shifts to the US CPI data for August.

Investors remain worried about the US inflation outlook due to stronger wage growth and a steady labor market.

Silver price remains sideways in a range of $22.80-23.20 from the past four trading sessions.

Silver price (XAG/USD) trades back and forth around $23.00 in the New York session. The white metal has remained inside the woods for the past four trading sessions as investors have been sidelined ahead of the United States inflation data for August, which will be published on Wednesday at 12:30 GMT.

The S&P500 has opened on a bearish note as investors remained cautious about the US Consumer Price Index (CPI). Investors remain worried about the inflation outlook due to stronger wage growth and a steady labor market. Inflation in excess of the desired rate of 2% seems most persistent and won’t be easily contained by the Federal Reserve (Fed). This would keep hopes of one more interest rate increase from the Fed alive.

The US Dollar Index (DXY) recovered significantly to near 104.90 but is struggling to extend the upside as investors await the US CPI data for further guidance. As per the estimates, US headline inflation is seen expanding at a stronger pace of 0.6% due to recovered gasoline prices. The core CPI that doesn’t inculcate volatile oil and food prices is expected to grow at a steady pace of 0.2%