Silver price (XAG/USD) gains ground for the second successive session, trading around $31.00 per troy ounce during the European hours on Wednesday. The upside of the safe-haven Silver is driven by concerns over a potential escalation of the Middle East conflict. Israeli forces continued their offensive in northern and central Gaza on Wednesday, following an airstrike on a tent encampment, according to Reuters.

The militant group Hamas reported that the renewed Israeli campaign killed over 60 Palestinians across the enclave on Tuesday. This could derail efforts to secure a ceasefire in the Gaza war, with talks scheduled to resume in Doha on Wednesday.

Traders anticipate the second semi-annual testimony by Federal Reserve Chairman Jerome Powell and speeches by the Fed's Michelle Bowman and Austan Goolsbee on Wednesday. Additionally, attention will be on the US Consumer Price Index (CPI) data, set to be released on Thursday.

The price of the non-yielding assets like Silver could face challenges as Fed Chair Jerome Powell reiterated the Fed's cautious stance during the testimony before the US Congress on Tuesday. Powell stated, "First-quarter data did not support the greater confidence in the inflation path that the Fed needs to cut rates."

Powell also emphasized that a "policy rate cut is inappropriate until the Fed gains greater confidence that inflation is headed sustainably toward 2%." The policymaker noted that "First-quarter data did not support the greater confidence in the inflation path that the Fed needs to cut rates."

However, the CME's FedWatch Tool indicates a 70.0% probability of a Fed rate cut in September, up from 68.4% a week earlier. The US Core Consumer Price Index (CPI) data, scheduled for release on Thursday, is forecasted to remain steady at 3.45% year-over-year in June. Monthly, the Core CPI is also expected to remain consistent at 0.2%.

Source : Fxstreet