Silver price extended a consolidation as gold prices retreated after CPI data.
The silver futures contract lost 1.30% on Tuesday, March 12, as it extended a short-term consolidation along the $24.50 level. The market reacted to the important Consumer Price Index release and the accompanying gold prices retreat. Last week, it was relatively weaker than the yellow metal, still trading below local highs from mid-December and way below the December 4 local high of over $26. Yesterday, silver reached a locah high of $24.90.
In the previous week, silver was trading within a short-term consolidation below the $23 level, and a week ago on Friday, it broke above that level. On February 14, it dipped slightly below the January 22 local low of around $22, and it was the lowest since mid-November.
Today silver is trading higher, but still within a consolidation, as we can see on the daily chart (the chart includes today’s intraday data):
The silver price is 0.6% higher, as it is trading along the $24.50 level. What about the other precious metals? Gold is 0.1% higher, platinum is 1.0% higher and palladium is 3.1% higher. So, the main precious metals’ prices are mixed this morning.
Yesterday’s Consumer Price Index release has been as expected at +0.4% m/m. Today we won’t get any new important economic data, however, the markets may react to the outcome of the 30-y Bond Auction later in the day.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days (EST Timezone).
Wednesday, March 13
- 3:00 a.m. U.K. - GDP m/m
- 1:01 p.m. U.S. - 30-y Bond Auction
Thursday, March 14
- 8:30 a.m. U.S. - PPI m/m, Core PPI m/m, Retail Sales m/m, Core Retail Sales m/m, Unemployment Claims
- 10:00 a.m. U.S. - Business Inventories m/m
Paul Rejczak
Stock Trading Strategist