• Silver fell below $22.00 on Tuesday but remained within recent ranges as traders eye upcoming US CPI data on Friday.
• Further evidence of slowing US inflation coupled with growing fears about US growth add upside risks to precious metals.
• Silver bulls are eyeing a break above $22.50 resistance and a push towards $23.00.

Spot silver (XAG/USD) slipped back below the $22.00 per troy ounce level in quiet trading conditions on Tuesday and was last trading lower by about 0.5% in the $21.90s but still within recent intra-day ranges. Just released US trade data showed the country’s deficit shrinking a little more than expected in April, and this didn’t impact broader market sentiment. Ahead, traders will be watching a speech from US Treasury Secretary Janet Yellen at 1400GMT, but the remainder of the session looks set to remain quiet.

Most XAG/USD traders likely expect the pair to remain stuck within recent $21.50-$22.50ish ranges ahead of this Friday’s US Consumer Price Inflation report, with the 21-Day Moving Average at $21.74 likely to offer some short-term support. Traders are on the lookout for fresh signs that US inflation (and perhaps also Fed hawkishness might have peaked) might have peaked, which could weigh on the US dollar and US yields in the short term.

Given the negative relationship precious metals have to yields and the buck, this could give silver a boost and any US CPI-inspired break above resistance at $22.50 could see silver extend upside towards $23.00 and the 50DMA just above it. A worsening US growth story further adds to the potential upside risks for precious metals, amid a potential increase in the bid for safe havens.