• Silver price rebounds strongly from $28.60 as the US Dollar corrects.
• US price pressures are expected to have slowed in May.
• Fed Bowman sees no rate cuts this year.

Silver price (XAG/USD) recovers sharply from a six-week low of $28.60 in Thursday’s New York session. The white metal rises to near $29.20 as the US Dollar (USD) extends its correction amid caution ahead of the United States (US) core Personal Consumption Expenditure Price Index (PCE) data for May, which will be published on Friday.

The US PCE report is expected to show that core price pressures grew at a slower pace of 0.1% against 0.2% in April month-on-month. Annually, the underlying inflation is projected to have decelerated to 2.6% from 2.8% in April.

The scenario in which price pressures decline, as expected or more than that, would boost expectations of early rate cuts by the Fed. Currently, financial markets expect that the Fed will start reducing interest rates from the September meeting and will deliver subsequent rate cuts in the November or December meeting. On the contrary, hot inflation reading would be favorable for the US Dollar and bond yields.