The Personal Consumption Expenditure (PCE) price index remained obstinate in July, according to the US Bureau of Labour Statistics, and the silver price (XAG/USD) is under selling pressure close to the psychological resistance of $25.00.

Both the headline and core PCE increased each month at a steady 0.2% rate. Additionally, as anticipated by market participants, the annual headline and core PCE increased little, to 3.3% and 4.2%, respectively.

In addition, the US Department of Labour released information on weekly jobless claims. Individuals requesting unemployment benefits decreased to 228K for the week ending August 25, compared to forecasts of 235K and the prior reading of 232K.

As persistent PCE statistics balance out the effects of the weaker labor demand recorded by US Automatic Statistics Processing (ADP) for August, which was issued on Wednesday, the US Dollar Index (DXY) is holding gains around 103.60 and aiming to extend gains further.

Investor attention shifts to the US Nonfarm Payrolls (NFP) data for August, which will be released on Friday at 12:30 GMT, after the Fed’s prefered inflation gauge. As anticipated, the US labour force had a new addition of 170K payrolls, which was less than July’s figure of 187K. At 3.5%, the unemployment rate is still the same. In addition, data on average hourly earnings will be a major focus.

technical examination of silver
On a two-hour chart, the price of silver is getting close to the horizontal resistance line drawn from the high on July 20. The 50-period Exponential Moving Average (EMA) is sloping upward, which suggests that the upward momentum is quite positive.

Indicating that the upward momentum is active, the Relative Strength Index (RSI) (14) oscillates in the positive area of 60.00–80.00.

Key points

The price of silver drops precipitously from $25.00 while the US PCE price index remains stable.
The impact of the weaker labour demand is partially countered by sustained PCE statistics, keeping the US Dollar Index (DXY) up near 103.60.
The high on July 20 at about $25.30 indicates that the price of silver is getting close to the horizontal barrier.

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