Silver Price Forecast: Buyers struggle below the 100-day SMA

Silver (XAG/USD) faced selling pressure on Wednesday amid a strengthening US Dollar, driven by stronger-than-expected inflation data. The Personal Consumption Expenditures (PCE) Price Index rose 0.2% month-over-month in July, surpassing expectations, while the annual rate held at 3.7%. The upside surprise in headline inflation aided the US Dollar, which climbed slightly after recent weakness, trading near 99.20.

Despite the positive data, the Federal Reserve is seen likely to keep interest rates steady at their September meeting, which could prevent a deeper decline in Silver's price. However, the 100-day Simple Moving Average (SMA) and 200-day SMA continue to act as overhead supply levels, limiting the upside. Technical indicators suggest a neutral-to-bullish near-term bias for Silver, with buyers struggling to break through the 100-day SMA.

The immediate resistance level lies at the 38.2% Fibonacci retracement at $68.02, followed by the 100-day SMA at $68.31. Support is found at the 23.6% Fibonacci retracement near $62.98 and the 50-day SMA at $61.32, with a deeper structural low around $54.82 if the price continues to slide. Silver's price is influenced by factors such as market sentiment, the US Dollar, industrial demand, and geopolitical events.

Investors may consider Silver as a hedge during high-inflation periods or as a diversifier in their portfolios.