Silver Price Analysis: XAG/USD refreshes monthly low near $22 ahead of US CPI

• Silver price drops to near $22.00 ahead of US inflation data.
• Fed Powell leaned towards raising interest rates further.
• The US inflation report will showcase whether progress in inflation easing towards 2% has slowed.

Silver price (XAG/USD) fell sharply to near $22.00 as Federal Reserve (Fed) Chair Jerome Powell and his teammates leaned towards raising interest rates further to push the monetary policy to a sufficiently restrictive stance.

Jerome Powell commented last week that the central bank won’t hesitate to raise interest rates further to ensure the achievement of price stability. While Fed policymakers Mary Daly and Thomas Barkin remained unsure about raising interest rates.

Meanwhile, uncertainty ahead of the US inflation data for October has kept the Silver price on edge. As per the consensus, the monthly and annual core Consumer Price Index (CPI) is seen expanding at a steady pace of 0.3% and 4.1%, respectively.

The US Dollar consolidates ahead of the inflation data. A slowdown in progress in inflation declining towards 2% would elevate hawkish Fed bets. The US Dollar Index (DXY) struggles to extend upside above the immediate resistance of 106.00. S&P500 futures added some losses in the European session, portraying a risk-off market mood. 10-year US Treasury yields rose to near 4.65%.

Silver technical analysis

Silver price resumes its downside journey after testing the breakdown of the consolidation formed in a range of $22.37-23.70 on a four-hour scale. The near-term demand for the white metal remains downbeat as the asset has dropped below the 200-period Exponential Moving Average (EMA), which trades around $22.70.

The Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which indicates that the bearish momentum has been triggered.

Silver four-hour chart