I noticed that silver maintains its strength around $87 despite all the pressures, and the white metal reached its highest level in two months at $87.82 yesterday. The interesting thing here is that US inflation data came in stronger than expected — the Consumer Price Index rose to 3.8% annually instead of the expected 3.7%. This increased the chances of a rate hike by the Federal Reserve to 35.3%, but silver still moves positively.

Typically, rising interest rates put pressure on precious metals because they do not generate yields, but it seems investors also see strong prospects for other precious metals prices. The dollar, in turn, is strong at 98.46 on the DXY index, but silver holds onto its gains despite that. Technically, the XAG/USD pair is trading above the 20-day moving average at $78.68, and the Relative Strength Index at 66 indicates strong bullish momentum but not overbought.

If silver breaks above the $87.82 level, we may see a move toward $90 and even $96.62 (March’s high). The first support is around $78.68, which is currently solid. Investors are also watching geopolitical developments and their impact on commodities. Precious metals deserve attention these days, especially with current uncertainty.