Silver Price Forecast: XAG/USD picks up to $38.00 favoured by a softer US  Dollar

• Silver trims losses as the US Dollar retreats ahead of the US PPI release.
• The Dollar jumped on Tuesday as strong inflation figures curbed hopes of Fed cuts.
• XAG/USD downside attempts have been above previous highs, at $37.30.

Silver (XAG/USD) is regaining some of the ground lost over the last two days and is picking up towards the $38.00 level. The US Dollar is giving up previous gains as the market digests the US CPI figures and shifts its focus towards the PPI report, due later today.

US consumer prices figures confirmed that Trump's tariffs are starting to filter through Main Street, which strengthens Fed Powell's "higher for longer" monetary policy stance. US yields and the US Dollar soared following the data, while the precious metals declined.

Technical Analysis: In a bullish trend, supported by $37.60

From a technical perspective, the pair is correcting lower from its long-term highs above $39.00, yet the broader bullish trend remains in play. The 4-hour Relative Strength Index has pulled back from heavily oversold levels but remains above the 50.00 level, which divides bullish from bearish territory.

Downside attempts have found buyers at $37.60 (July 15 low), and the pair is on a tentative recovery favoured by a somewhat softer USD and lower US yields ahead of the US PPI report. Resistance at the July 15 high, at $38.40, is likely to offer some resistance ahead of the mentioned multi-year high, at $3915.

On the downside, below $37.60, the pair may find support at the previous resistance of $37.25-$37.30 (June 18 and July 6 highs), ahead of the July 8 and 9 lows at $36.30.