Silver rose 1% to $38.60 per ounce on Wednesday, extending gains for a second session as steady US inflation data reinforced expectations for a September Federal Reserve rate cut. Headline CPI held at 2.7% against forecasts of 2.8%, while core CPI climbed to 3.1%, its highest in six months. Markets now price in a 94% chance of a 25-basis-point cut next month, with another reduction likely before year-end.

Geopolitical focus shifted to upcoming US-Russia talks in Alaska over the war in Ukraine. However, the White House downplayed expectations, calling the meeting between Presidents Donald Trump and Vladimir Putin “a listening exercise,” dampening hopes for any immediate ceasefire breakthrough.

XAG/USD TECHNICAL OVERVIEW

Technical Structure: Silver maintains a bullish technical structure, with a strong bullish candle on the daily chart and prices holding above the 20SMA, signaling sustained upward momentum. On the 4H timeframe, an inverted head & shoulder pattern indicates potential continuation, while the 1H chart shows a double bottom formation, reinforcing bullish bias. 

Weekly Trend: Uptrend

Intraday Trend/ Intraday Strategy: The intraday outlook is also favoring a buy-on-support or buy-on-breakout strategy

Major Support: 38.30, 37.90, 37.50
Major Resistance: 38.70, 38.90, 34.00