Silver price (XAG/USD) experiences a pullback after hitting a daily high of $27.73. This dip is largely attributed to a stronger US Dollar following warmer-than-expected US inflation data. However, falling US Treasury yields limit the decline, and the overall bullish trend for Silver remains intact.

Key Factors:

• Inflation Impact: Despite the latest inflation report exceeding expectations, the resulting dip in Silver is considered a temporary setback within the ongoing uptrend.
• Stronger Dollar: The US Dollar’s strength puts pressure on Silver prices, but the impact is softened by a decline in US Treasury yields.
• Technical Support: The 50% Fibonacci retracement level (around $27.05) has proven to be a resilient support area for Silver.

Technical Analysis: Bullish Outlook with Retracement Potential

• Uptrend Continues: Silver’s overall uptrend remains strong, with dips viewed as buying opportunities.
• Key Resistance: A decisive break above $28.00 would open the path toward the 23.6% Fibonacci retracement ($28.48) and the psychological $29.00 mark. The YTD high of $29.76 remains the major resistance level.
• Potential Retracement: A break below the 50% Fibonacci retracement ($27.05) could trigger a deeper correction, with potential support at the 61.8% retracement ($26.41) and further downside risks toward the confluence of the 50-day DMA and the 78.6% Fibonacci retracement ($25.50).