Silver rallies to new all-time highs on renewed Fed independence worries

Concerns Over Fed Independence Boost Silver Prices

Silver has surged to new record highs following the news of the U.S. Department of Justice subpoenaing the Federal Reserve. This development signals ongoing threats to Fed independence, as the White House appears to be seeking justification to dismiss Chair Powell. The rising fears of potential inflation and U.S. Dollar debasement are driving silver prices upward.

Technical Analysis of Silver

On the daily chart, silver's rally is evident following the DOJ news. The 4-hour chart shows the previous high of 82.68 potentially acting as support. Buyers are expected to step in around this level, while sellers will look for prices to drop below 82.68 to position for a downturn. As long as this upward trend is intact, the upcoming U.S. CPI report will be crucial for short-term price movements.

Upcoming Catalysts

Tomorrow's U.S. CPI report is crucial, with subsequent retail sales and PPI data also set to impact market dynamics. Hot inflation data could trigger selling pressure on silver; however, soft data may continue to support bullish sentiment in the longer term.