Silver Price Forecast: XAG/USD maintains position around $31.00 as traders await US CPI

• 
  Silver
  price
  holds
  gains
  as
  investors
  exercise
  caution
  ahead
  of
  US
  Consumer
  Price
  Index
  (CPI)
  data
  due
  on
  Thursday.
• 
  Fed
  Powell’s
  neutral
  remarks
  on
  Wednesday
  provided
  support
  for
  non-yielding
  Silver.
• 
  Renewed
  Israeli
  attacks
  could
  hinder
  efforts
  to
  negotiate
  a
  ceasefire
  agreement
  and
  bolster
  the
  demand
  for
  the
  safe-haven
  Silver.

Silver
price
(XAG/USD)
gains
ground
for
the
third
successive
session,
trading
around
$31.00
per
troy
ounce
during
the
Asian
hours
on
Thursday.
This
upside
could
be
attributed
to
investors’
caution
ahead
of
the
release
of
the
upcoming
US
Consumer
Price
Index
(CPI)
data
for
June,
scheduled
for
release
on
Thursday,
for
more
clarity
on
the
Federal
Reserve’s
(Fed)
monetary
policy
direction.
The
higher
interest
rates
negatively
impact
the
demand
for
non-yielding
assets
like
Silver.

Market
forecasts
generally
predict
that
the
annualized
US
core

CPI
for
the
year
ending
in
June
will
remain
steady
at
3.4%.
Meanwhile,
headline
CPI
inflation
is
expected
to
increase
to
0.1%
month-over-month
in
June,
compared
to
the
previous
flat
reading
of
0.0%.

Meanwhile,
on
Wednesday,
Federal
Reserve
(Fed)

Chairman
Jerome
Powell
underscored
the
importance
of
closely
monitoring
the
labor
market,
highlighting
its
significant
deterioration.
Additionally,
Powell
expressed
confidence
in
the
downward
trend
of
inflation,
following
his
remarks
on
Tuesday
that
emphasized
the
necessity
of
further
data
to
strengthen
confidence
in
the
inflation

outlook.

Additionally,
Fed
Chair
Powell
emphasized
on
Tuesday
that
a
“policy
rate
cut
is
inappropriate
until
the
Fed
gains
greater
confidence
that
inflation
is
headed
sustainably
toward
2%.”
He
also
noted
that
“first-quarter
data
did
not
support
the
greater
confidence
in
the
inflation
path
that
the
Fed
needs
to
cut
rates.”

On
the
geopolitical
front,
Israeli
forces
carried
out
an
offensive
in
northern
and
central
Gaza
on
Tuesday,
which
included
an
airstrike
on
a
tent
encampment,
as
reported
by
Reuters.
Palestinian
officials
reported
that
at
least
29
people,
mostly
women
and
children,
were
killed
in
the
strike.
The
incident
occurred
as
spectators
gathered
at
a
school
grounds
in
Abassan,
east
of
Khan
Younis,
where
vendors
were
selling
smoothies
and
biscuits.

This
development
has
raised
concerns
about
a
possible
escalation
in
the
Middle
East
conflict
and
bolstered
the
appeal
of
safe-haven
assets
like

Silver.
Hamas,
the
militant
group,
warned
that
renewed
Israeli
attacks
could
disrupt
efforts
to
negotiate
a
ceasefire
in
the
Gaza
conflict,
with
discussions
slated
to
resume
in
Doha
on
Wednesday.