XAG/USD falls 1.6% to $67.87 as traders await July’s core PCE data, the Fed’s key inflation measure.
Silver prices retreated 1.6% to $67.87 in Asian trading on Tuesday, pressured by caution ahead of Wednesday’s US Personal Consumption Expenditures (PCE) inflation data. The core PCE index, the Federal Reserve’s preferred inflation gauge, is closely watched for clues on monetary policy direction.
Analysts expect core PCE inflation to rise 0.24% month-over-month in July, aligning with the Fed’s target for a second straight report. Headline prices are projected to increase a milder 0.15%, while market-based core PCE is forecast to remain contained at 0.13%. Annualized core PCE is seen steady at 3.4%.
Weak retail sales data suggests consumer spending slowed to 0.2% in July, reinforcing expectations of cooling demand. Higher inflation could fuel concerns over potential Fed rate hikes, weighing on non-yielding assets like silver.