Silver (XAG/USD) extends its decline on Tuesday and trades around $67.50 at the time of writing, down 1.43% on the day.
The precious metal corrects for a second consecutive day as investors remain cautious ahead of Wednesday’s release of the United States (US) Personal Consumption Expenditures (PCE) Price Index, while attention also turns to the Jackson Hole Symposium
The core PCE inflation, the Federal Reserve’s (Fed) preferred gauge for assessing price pressures, is expected to remain steady at 3.4% YoY in July. A stronger-than-expected reading could fuel concerns over tighter monetary policy and weigh on Silver, while easing inflation could strengthen expectations for a monetary policy hold and support precious metals. Investors are also monitoring signals from the US labor market.
The four-week average of the ADP Employment Change rises to 11.75K jobs per week in early August, up from 9.5K previously. The improvement suggests some recovery in private-sector hiring, although it does not fully dispel concerns about the trajectory of the US economy. Despite Silver’s correction, US fiscal risks could limit bearish pressure.