Silver prices are up today after spending a week trading sideways. The move appears to be spurred by stock markets continuing to give back this week’s gains.

The break to the February 16 high at $15.45 has turned the short-term trend bullish and the price may soon reach the February 12 high of $15.82. The trend should remain bullish as long as the price trades above $15.15. A break to this level of $15.15 may trigger a decline to the February 8 low at $14.91, which, in turn, may open up the door for a decline to the February 5 low at $14.67.

U.S. CPI

A Bloomberg News survey projects U.S. Consumer Price Index to rise 1.3% YoY from 0.7% in December. While it’s not the Fed’s preferred inflation measure, such a boost in CPI would be welcomed, as the Fed is looking to normalise rates. U.S. Core inflation is expected to remain unchanged at 2.1% YoY.

It would be fair to expect silver potentially struggling to maintain its bullish bias if the inflation prints stronger than expected, as the Dollar would gain on higher U.S. interest rates.

Silver Prices | FXCM: XAG/USD