• Silver price edges lower as traders ease back on a deeper rate cut by the Fed in September.
• CME’s FedWatch Tool suggests odds of a 50 basis points cut by the Fed in September have dropped to 50%.
• Israeli forces continued their operations near the southern Gaza city of Khan Younis on Monday.

Silver price (XAG/USD) retraces its recent gains from the previous session, trading around $27.70 during the Asian session on Tuesday. This downside could be attributed to diminished expectations for a 50-basis point interest rate cut by the US Federal Reserve in September.

US Federal Reserve (Fed) in September. According to CME’s FedWatch Tool, the probability of 50 basis points (bps) cut in September has dropped to 50%, down from 85% last week. However, the rate markets continue to price in a 100% chance of at least a 25 bps cut at the upcoming meeting.

Traders are likely to focus on US producer inflation data due on Tuesday and consumer inflation figures on Wednesday, looking for confirmation that price growth remains stable in the United States (US).

The downside of safe-haven metals like Silver could be restrained due to rising geopolitical tensions in the Middle East. Israeli forces pressed on with their operations near the southern Gaza city of Khan Younis on Monday. CBC News cited Palestinian medics saying Israeli military strikes on Khan Younis on Monday killed at least 18 people.