Silver Price Forecast: XAG/USD awaits acceptance above $68.00 before the next leg up

Silver (XAG/USD) is inching upwards but has yet to break above $68.00, remaining near the bottom of its daily trading range on Thursday. The metal, however, remains close to a two-week high, previously reached on Wednesday. Traders are eagerly watching the release of US inflation data, specifically the Producer Price Index (PPI) and Consumer Price Index (CPI), to gauge the Federal Reserve's (Fed) policy stance, which will impact the value of the US Dollar (USD) and consequently, USD-denominated commodities like silver.

The technical analysis shows silver confined within a range for the past two weeks, failing to advance beyond the 100-period Simple Moving Average (SMA) on the 4-hour chart. Technical indicators, however, indicate that buyers are still in control, provided the pullbacks remain modest. To justify a further climb toward the $70.00 level and the August high of $71.00, silver needs a sustained strength above $68.00.

A breakdown below $65.40-$65.30 could signal a shift to a bearish outlook, exposing the monthly swing low around $63.35-$63.30. The metal's price is influenced by various factors, including geopolitical events, inflation rates, interest rates, and industrial demand, as it is extensively used in electronics and solar energy. Gold tends to move in tandem with silver when both are considered safe-haven assets.

The Gold/Silver ratio can provide insight into the relative value of both metals. The European Central Bank (ECB) is scheduled to raise interest rates on Thursday, which may impact silver prices.