Silver price consolidates around $24.50 ahead of US Inflation data.
The US core CPI is expected to decelerate while the headline inflation might remain sticky.
Silver price needs a fresh trigger for a decisive break above $24.60.
Silver (XAG/USD) traded in a narrow range around $24.50 in Tuesday’s European session. The white metal has struggled to find a direction since Friday’s trading session. The asset is expected to break out of its sideways trend after the release of the United States Consumer Price Index (CPI) data for February, which will be published at 13:30 GMT.
The monthly headline inflation is forecasted to have risen by 0.4% from 0.3% in January. In the same period, the core inflation that strips off volatile food and energy prices is anticipated to have grown at a slower pace of 0.3% against the prior reading of 0.4%. For annual figures, economists expect that the headline CPI remains sticky at 3.1% and the core inflation decelerates to 3.7% from 3.9% in January.
The market expectations for the Federal Reserve (Fed) rate cuts in the June policy meeting will be significantly influenced after the release of the inflation data.
Ahead of the US consumer price inflation data, market sentiment is quite bullish. S&P 500 futures have posted significant gains in the London session, portraying the higher risk appetite of the market participants. 10-year US Treasury yields have dropped to 4.10%. The US Dollar Index (DXY) trades inside Monday’s trading range around 102.80.
Edited 14 Mar 2024, 17:07
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