Additionally, a generally positive risk tone might cap the safe-haven demand for Silver, necessitating robust follow-through buying to confirm the end of the recent decline.
US Dollar Dip-Buying and Inflation Data
On Tuesday, the US Dollar experienced some dip-buying, creating headwinds for Silver prices. Despite this, expectations for two rate cuts by the Fed in 2024 help temper any significant slide in Silver.
The Fed’s projection of a single rate cut this year, compared to three cuts projected in March, has allowed US bond yields to recover and the USD to regain traction.
Philadelphia Fed President Patrick Harker’s comments on maintaining current rates to control inflation added further pressure on Silver.
Economic Indicators and Fed Speeches
Investors are now focused on upcoming US economic data releases. Core Retail Sales and Retail Sales, both scheduled for release on Tuesday, are expected to show growth of 0.2% and 0.3% respectively. Industrial Production data is also set to be released, with a forecasted increase of 0.3%.
These indicators are anticipated to provide short-term trading opportunities for Silver (XAG/USD). Additionally, speeches by several influential FOMC members will likely impact USD demand and, consequently, Silver prices.