On Wednesday (January 15th) during the European trading session, silver prices rose slightly above the key 200 day moving average of $29.97. This level is a key resistance level in the market, and breaking through it may trigger new buying interest. After $29.97, the next target is at $30.54, which is the intersection of the 50 day moving average and the short-term pivot point.

A transaction at $30.54 will lay the foundation for a potential increase in silver prices towards $32.33, which is an important technical milestone for silver prices.

On the downside, failure to break through resistance levels may lead to a pullback. If the silver price falls below $29.70, it may retest the support level of $28.74, and traders are closely monitoring this level.

Will the weakness of the US dollar and low yields support silver?

The modest rise in silver prices was supported by the weakness of the US dollar and the decline in the yield of US treasury bond bonds. The yield of the 10-year US treasury bond bond fell 2 basis points to 4.771%, down from its recent high, and the US dollar index fell 0.1%. These measures have increased the attractiveness of silver to international investors.

The wholesale price data released on Tuesday showed a lower than expected increase, which to some extent eased people's concerns about inflation. This development helped cool US treasury bond yields and supported silver prices.

How will inflation data affect silver prices?

The Consumer Price Index (CPI) data report shows an annual inflation growth rate of 2.9%, which is in line with expectations. The annual growth rate of core CPI is 3.2%, lower than the expected 3.3%. Weaker than expected data may strengthen the reasons for the Federal Reserve to cut interest rates, which is favorable for silver.

For traders, the next few trading days may reveal whether silver is preparing for a breakout or a deeper pullback. Continue to pay attention to technical level and macroeconomic signals to clarify the next trend of silver.