Silver Rally Faces Crucial Test Amid U.S. CPI Data Release

Silver's recent gains driven by geopolitical hopes and weak jobs data face a pivotal test from today's U.S. CPI release, which will influence Fed rate hike expectations.

Woofun AI notes that silver prices have risen steadily since last Tuesday, supported by prospects of a U.S.-Iran agreement and weaker-than-expected non-farm payroll figures.

However, upward momentum appears to be fading, making today's U.S. CPI data critical for sustaining the rally. Market attention is focused on the core CPI month-on-month figure, with expectations set at 0.2%. A result exceeding forecasts could trigger short-term selling and increase bets on a rate hike, while weak or in-line data may reduce tightening risks and provide further upward support.