Silver closed Tuesday at $64.848 and opened Wednesday at $64.849, down $3.21 or 4.7% from Monday's $68.154 open. The metal printed a week high of $68.992 on Tuesday before plunging to a low of $63.404 earlier today.
The sharp reversal from Tuesday's $68.99 high came as China set a stronger-than-expected dollar fixing, according to headlines from early Tuesday. This pressured precious metals across the board, with silver taking the brunt of the selling after testing the $69 resistance area.
Thursday brings US CPI data at 12:30 GMT, with headline inflation forecast to accelerate to 4.2% yearly from 3.8% previously. If CPI prints hot and silver holds below $65, the $63.40 low becomes vulnerable. If inflation surprises lower, resistance sits at Tuesday's $68.99 high. The ECB rate decision Thursday and UK GDP data Friday round out a packed calendar.
LHFX client positioning shows 62.6% of traders are long silver versus 37.4% short as of Wednesday morning. This long skew suggests retail remains bullish despite the sharp Tuesday selloff, potentially leaving room for further downside if support breaks.
Silver is consolidating between Wednesday's $63.404 low and the psychological $65 level after bouncing to $65.059 in early European trading. If $65 caps rallies ahead of tomorrow's CPI, the $63.40 low comes back into focus. A clean break above $65 would target the $66.13 Monday low as initial resistance. Trade silver CFDs with LHFX as volatility picks up into Thursday's inflation data.
Byline: LHFX Research
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