In Wednesday’s New York session, the price of Silver (XAG/USD) remained stagnant near $28.00 as market sentiment shifted following the release of the US Consumer Price Index (CPI) report for July. Expectations for a substantial interest rate cut by the Federal Reserve in September have tempered, impacting the performance of the white metal.
The CME FedWatch tool indicates a decrease in the probability of a 50 basis points rate cut, dropping to 41.5% from the previous 54% following the CPI report. Despite this adjustment, the data suggests that a rate cut next month is still likely.
The CPI report revealed a slight deceleration in both annual headline and core inflation rates, reaching 2.9% and 3.2% respectively, with monthly figures in line with expectations at a 0.2% increase for both headline and core inflation.
Simultaneously, the US Dollar has depreciated further as the inflation data has bolstered investor confidence in the gradual return of price stability towards the targeted 2%. The US Dollar Index (DXY), a measure of the USD against major currencies, hit a fresh weekly low at 103.30.
Looking ahead, the upcoming release of US monthly Retail Sales data for July on Thursday is poised to serve as the next significant factor influencing Silver prices, shaping market expectations and investor sentiment in the precious metals market.
