Bank of America expects inflation to remain above the goal, which strengthens the case for the FED to keep the rates stable. The bank sees no cuts in the short term, conflicting market expectations for a possible reduction in July. Goldman Sachs also predicts further disinflation in areas such as cars and housing, but warns that the rate policy could prevent these effects.
Despite worries, some surveys suggest that the expectations of inflation cool. The National Federation of Independent Business reported that only 18% of small companies regards inflation as their biggest challenge, the lowest level since the end of 2021. Cleveland Fed’s research also showed a remarkable decrease in inflation expectations in the coming 12 months.
Silver Market Prognast
Silver traders must keep a close eye on price promotion about $ 31.81. A break below this level increases the chance of a retest of $ 31.17, with a potentially downward risk for $ 30.69 – $ 30.63 if the sale is increasingly sold. On the other hand, when buyers push silver above $ 31.95 with conviction, a rally could unfold itself to $ 32.53 – $ 32.65.
Macro -economic factors, including today’s CPI report and Powell’s testimony, will probably stimulate market sentiment. If the inflation data is hotter than expected, silver can get the pressure from rising bond returns and a stronger dollar. However, all signs of cooling inflation can speculation of reducing the FED rate, supportive precious metals.
More information in our economic calendar.