Silver price (XAG/USD) consolidates in a tight range for the last four trading sessions. The upside in the Silver price remains limited to around $31.00 as investors await the United States (US) Consumer Price Index (CPI) data for June, which will be published at 12:30 GMT.
The inflation data will significantly influence market speculation for Federal Reserve (Fed) rate cuts this year. According to the CME FedWatch tool, traders expect that the central bank will choose the September meeting as the earliest point for pivoting to policy normalization. The tool also shows that there will be two rate cuts instead of one as signaled by officials in the latest dot plot.
Meanwhile, the US CPI report is expected to show that the core consumer inflation, which strips off volatile food and energy prices, grew steadily, while annual headline figure declined to 3.1% from May's reading of 3.3%.
Market expectations for Fed rate cuts strengthened on widening cracks in the US labor market due to the maintenance of a restrictive interest rate stance. In the semi-annual Congressional testimony, Fed Chair Jerome Powell admitted that the economy is no longer overheated, with cooling job market conditions. He added that the labor market has moderated to where it was before pandemic-era.
Firm rate-cut speculation weighs on the US Dollar (USD). The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, appears to be vulnerable near a four-week low around 104.85
Source : Fxstreet
