Spot silver (XAG/USD) rose strongly in Asian trading on Wednesday, gaining about 1% to trade around $65.20. Investors are awaiting the release of the US July Consumer Price Index (CPI) data for new clues about the future direction of the Federal Reserve's monetary policy. The market expects the US overall CPI to fall to 3.4% year-on-year in July, down from 3.5% in June; core CPI, excluding food and energy, is expected to rise 2.5% year-on-year, slightly lower than the previous 2.6%. On a month-on-month basis, the market expects overall inflation to rise by about 0.1% and core inflation by about 0.2%. US inflation data will be a key factor influencing the short-term direction of silver . If inflation continues to slow, the market may increase its expectations for a future policy shift by the Federal Reserve, thereby weakening the dollar and benefiting precious metals; however, if inflation is stronger than expected, the likelihood of the Federal Reserve maintaining a restrictive policy increases, and the upside potential for silver may be limited. Recent policy signals from the Federal Reserve remain cautious. Federal Reserve Chairman Kevin Warsh previously stated that there are still upside risks to inflation, and the policy committee will continue to push inflation back towards the 2% target. This means the market still needs to pay attention to future inflation changes and the pace of interest rate policy adjustments. Meanwhile, energy supply risks are affecting the precious metals market. The recent rise in international oil prices is mainly driven by risks in Middle Eastern energy transportation, and high oil prices may increase global inflationary pressures again. Rising energy prices have a dual impact on precious metals . On the one hand, inflation concerns are increasing safe-haven demand, which is beneficial to precious metal assets such as silver. On the other hand, rising oil prices may push the Federal Reserve to maintain a tight policy, thereby limiting silver's gains through the dollar and US Treasury yields. Shipping activity in the Strait of Hormuz has declined significantly recently. This region plays a crucial role in global energy transportation, and increased supply risks are driving up energy market risk premiums. Market concerns are that limited energy supply could affect the global economy and inflation path. Besides safe-haven demand, silver's industrial attributes are also attracting attention. With the growth in demand from new energy, electronics manufacturing, and other fields, the market remains focused on the long-term supply and demand structure of silver. Recent adjustments to the silver futures trading mechanism also reflect increasing market participation. Currently, investors are mainly focused on US CPI data, Federal Reserve policy expectations, the dollar index trend, and changes in global energy supply. If US inflation is lower than expected, the dollar may come under pressure, and silver is expected to continue rising; if inflationary pressures remain significant, rising US Treasury yields may limit silver's short-term performance. The daily chart for silver shows that XAG/USD has continued its upward trend recently, with the price trading above the 20-day exponential moving average of $61.28, maintaining a complete short-term bullish structure. The RSI indicator is around 61, in positive territory but not yet clearly overbought, indicating that upward momentum remains and the market does not show signs of overheating. Resistance is seen around $66.60; a break above this level could see prices challenge the June 17 high of $71.56. Support is initially seen around the 20-day moving average at $61.28, followed by the psychological level of $60. A break below $61 could weaken the short-term uptrend. On the 4-hour chart for silver, prices are maintaining an upward trend with short-term moving averages continuing to slope upwards, indicating active buying. The RSI is in bullish territory, suggesting bulls are in control, but prices are near previous highs, posing a risk of profit-taking. A break above $66.60 could open up further upside potential, targeting $68 and $70; a failed attempt to break higher could see a pullback to the $63.50-$62 area for support. Short-term price action will be influenced by US inflation data and expectations for the dollar and interest rates. Editor's Summary: Silver is currently supported by inflation expectations, safe-haven demand, and industrial demand, maintaining a strong price trend. US CPI data will be a crucial factor in the near-term market repricing and may determine the short-term direction of the game between the US dollar and precious metals. If inflation continues to decline, the market may increase expectations of a shift in Federal Reserve policy, and silver may further challenge the area above $70; however, if energy prices drive up inflationary pressures, a stronger dollar and rising yields may limit silver's performance. Overall, the medium-term trend for silver remains positive, but the $65-$66 area has entered a key resistance zone. Investors should pay attention to data-driven market movements while guarding against the risk of short-term corrections due to high-level volatility.