Silver prices have retreated from earlier gains following the release of upbeat US economic data. The stronger-than-expected retail sales and jobless claims figures have boosted the US Dollar and Treasury yields, weighing on the precious metal.
While the recent rally in silver was driven by expectations of lower interest rates, the latest economic data has tempered these expectations, at least in the short term. The Federal Reserve is still anticipated to begin easing monetary policy, but the pace of rate cuts may be more gradual than initially anticipated.
Technical Outlook
Silver prices have experienced a short-term pullback but remain above their 20-period EMA, indicating potential upside momentum. However, the RSI is near the overbought territory, suggesting caution is warranted.
