• Silver price has corrected to near $23.00 as the USD Index has attempted a recovery move.
• After sustained US payroll additions and higher wage pressure, investors are awaiting inflation numbers.
• Silver price is auctioning in a Rising Channel chart pattern in which each pullback is considered a buying opportunity.

Silver price (XAG/USD) has slipped to near $23.11 after failing to extend the upside above $23.40 in the European session. The white metal has faced pressure as the US Dollar Index (DXY) has recovered after building a base around 101.70. The recovery move in the USD Index is propelled by anxiety among investors ahead of the Consumer Price Index (CPI) data, which is scheduled for Wednesday at 12:30 GMT.

As per the preliminary report, monthly headline CPI delivered a higher pace of 0.3% vs. the former pace of 0.1%. Also, core inflation that excludes oil and food prices is expected to match the headline CPI pace.

S&P500 futures have posted overnight gains following positive sentiment observed in Monday’s session. The market could go through some tough phases ahead of corporate earnings. Investors are not convinced of resilience in the second-quarter result season as higher interest rates by the Federal Reserve (Fed) and tight credit conditions by commercial banks have weighed heavily on firms’ operating activities.

After sustained payroll additions and higher wage pressure, investors are awaiting inflation numbers for further guidance. In addition to United States inflation data, investors will focus on the Fed’s Beige Book, which is expected to show the current economic situation and the outlook of the economy.

Silver technical analysis

Silver price is auctioning in a Rising Channel chart pattern on a two-hour scale in which each pullback is considered a buying opportunity by the market participants. The white metal is giving a tough fight to the 50-period Exponential Moving Average (EMA) around $23.00.

Meanwhile, the Relative Strength Index (RSI) (14) has slipped back into the 40.00-60.00 range, indicating a non-directional performance.

Silver two-hour chart