In Wednesday’s European session, Silver price (XAG/USD) remained steady above the critical support level of $29.00, as market participants awaited key events from the United States (US) later in the North American session. The white metal showed minimal movement ahead of the release of the US Consumer Price Index (CPI) data for May and the Federal Reserve’s (Fed) interest rate decision.
The US Dollar and bond yields also paused, with the US Dollar Index (DXY), which measures the Greenback against a basket of major currencies, edging down to 105.20. Meanwhile, 10-year US Treasury Yields held steady near 4.40%.
Investor focus is squarely on the upcoming US inflation data to gauge whether the recent trend towards lower inflation has resumed. Expectations are for a deceleration in the CPI data for May, following persistently high readings in the first quarter of the year.
Simultaneously, the Fed is anticipated to maintain its current policy stance for the seventh consecutive meeting. Of particular interest to global markets will be the Fed’s dot plot, which illustrates policymakers’ projections for the Federal funds rate in the medium to longer term. Analysts expect the dot plot to indicate fewer anticipated rate cuts this year compared to projections from March, reflecting robust labor market conditions and cautious optimism among officials regarding progress in reducing inflationary pressures.
