Silver prices retreated to near $31.60 on Friday, following a recent surge to $32.70. The decline was attributed to investor caution ahead of the release of the US Personal Consumption Expenditure Price Index (PCE) for August.

Inflation Expectations and Fed Rate Outlook:

The PCE data is expected to show a slight increase in core inflation, which could influence the Federal Reserve’s (Fed) decision on interest rates for the remaining months of the year. The market is currently anticipating further rate cuts.

US Dollar and Treasury Yields:

The US Dollar Index (DXY) remained near 100.50, while 10-year US Treasury yields declined slightly.

Technical Analysis: Silver Remains Bullish

Despite the recent pullback, silver’s near-term outlook remains bullish. The 14-day Relative Strength Index (RSI) indicates strong bullish momentum.