Silver price (XAG/USD) recovers sharply to near $22.70 as the US Dollar comes under pressure in the London session on Tuesday. The white metal rises as the US Dollar faces a sell-off due to easing geopolitical tensions.
US President Joe Biden is confident of a ceasefire between Israel and Palestine by next week. The US State Department said there has been progress in negotiations for releasing Israeli hostages.
The US Dollar Index, which represents the Greenback’s value against six rival currencies, extends its correction to 103.70.
This week, investors will focus on the United States' core Personal Consumption Expenditure price index (PCE) data for January, which will provide more insights into the timing of the Federal Reserve’s (Fed) rate cuts. Investors anticipate that monthly core PCE rose sharply by 0.4% from 0.2% in December. The annual core PCE data is anticipated to decelerate to 2.8% from the former reading of 2.9%.
The expectations for a rate cut by the Fed will be postponed if the underlying inflation turns out hotter than expectations.
On Monday, Kansas City Federal Reserve Bank President Jeffrey Schmid said inflation remaining above 2%, tight labor market conditions, and a decent demand outlook indicate that there is no need to rush for rate cuts
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