German Consumer Prices Hit New Multi-Year High

Germany's annualized headline inflation jumped to its highest point since August of 2012, jumping to 2.20% in February according to figures reported by Federal Statistics Office Destatis earlier. Harmonised to compare with other Euro Area countries, consumer prices gained by 0.70% on a month over month basis.

It was the first time since September of 2012 that annual inflation broke above the European Central Bank's price stability target of just under 2.00%. On a non-harmonised basis, February CPI rose by 0.60% from January and increased by 2.20% from the same period a year ago.  The predominant drivers of these gains were energy prices climbing 7.20% year over year while prices of goods rose by 3.20% and food prices increased by 4.40%. After trending higher following the weekly reopening, DAX 30 futures for June are currently correcting lower, trading around 12000.

Silver prices are trading modestly higher on Tuesday around the $16.950-mark as speculators continue to cover their shorts after the metal hit multi-week lows on Friday. Holdings of the world’s largest silver-backed ETF, iShares Silver Trust SLV, stood at 10,268 tonnes, unchanged from the prior session. Investors will be focusing on the two-day meeting of the US Federal Reserve’s Open Market Committee that begins later in the session.

With financial markets already factoring in a 0.25% hike in the benchmark rate, all eyes will be on Federal Reserve Chair Janet Yellen’s press conference for fresh clues as to the pace of rate increases in the coming months. Silver reversed from the strong resistance around $17.110, while on the downside, support should come in at $16.830.