The Currency analytics
By dan saada
Silver prices shot past $76.50 on Tuesday, bouncing back hard after getting hammered earlier this week.
Futures traders piled into silver contracts after the opening bell, betting the precious metal can protect them if inflation keeps running hot.
Goldman Sachs analyst Jessica Liu thinks the action is mostly speculation ahead of the CPI report.
The Fed's next move depends big time on what Thursday's CPI data looks like. If inflation comes in higher than the 3.
Gold's been bouncing around too, following silver's lead as traders try to figure out their next play.
Silver's price action over the past month has been all over the map. The metal was sitting pretty around $72 in late January before diving below $70 when rate hike fears took hold.
Geopolitical stuff isn't helping either. Tensions in Eastern Europe keep flaring up, and trade talks between major economies remain murky at best.
David Chen from J.P. Morgan warns against reading too much into short-term moves. "There's a lot of noise in the market right now," Chen said.
Supply side factors could matter more than traders realize. Mining companies haven't boosted production much lately, and refining capacity remains tight in some regions.
Major silver producers like First Majestic Silver and Pan American Silver didn't respond to requests for comment about the recent volatility.
The London Bullion Market Association reported trading volumes jumped 15% last week compared to the previous period.
Christopher Wong at HSBC thinks the rally might pull in retail investors if prices stay above $76.
The dollar's been wobbling too, which usually moves opposite to silver prices. Currency traders are just as confused as commodity folks about what comes next, and that's adding…
Fed Chair Jerome Powell said February 13 that the central bank is watching inflation indicators closely.
The World Silver Survey from the Silver Institute comes out next month, and analysts expect it to shed light on demand trends and supply forecasts.