Weekly Silver Tecnical Analysis - Silver Prices Surge to Monthly High Amidst Less Aggressive Fed Stance

Silver prices have been on the rise recently, with the XAG/USD trading at new monthly highs above $24.00 a troy ounce. Despite the rising value of the US Dollar, market sentiment continues to be the main driver in the session, with US equities set to finish the month with gains. At the time of writing, the XAG/USD is trading at $24.10, gaining 0.89%, respectively, XAG/AUD is trading at $36.00, gaining 1.26%.

The US Federal Reserve's less aggressive stance is contributing to the positive market sentiment. US Core PCE was below estimates, which has opened the door for a less aggressive Fed. This has caused a drop in US Treasury bond yields, a tailwind for the white metal, and pushed silver prices above $24.00 for the first time since February.

The Department of Commerce (DoC) featured the Fed's preferred gauge for inflation, the Core Personal Consumption Expenditure (PCE) for February, which rose by 4.6% YoY, below estimates of 4.7%, while the headline inflation dropped from 5.3% to 5% YoY. This indicates that the US Federal Reserve's approach to inflation may not be as aggressive as previously thought.

The XAG/USD is set to consolidate as the RSI exits from overbought conditions, with buyers preparing to push through the psychological $25.00 barrier. If the XAG/USD clears $24.63, resistance at $26.21 is expected next on April 18, 2022. Market analysts recommend keeping a close eye on the US Federal Reserve's future approach to inflation and how it affects silver prices.