Silver futures fluctuated lower in a narrow range during the Asian session to reflect the resumption of their bounce from the highest level since June 21, when it tested its highest since March 26, shrugging off the negative stability of the dollar index, despite the inverse relationship between them after the developments and economic data that we followed today by the Chinese economy, the world's largest consumer of metals.
And on the threshold of economic developments and data releases expected by the US economy, the world's largest economy, which includes the first half of the Fed's chairman semi-annual testimony before the US Congress in Washington, in addition to the reveal of the last FOMC meeting minutes, amid anticipation for any signs at the future of the Fed's monetary policy .
As of 05:48 GMT, silver futures (September delivery) fell 0.13% to currently trade at $15.12 per ounce from the opening at $15.14, while the dollar index fell 0.01% to 97.50 from the opening at 97.51.
We have followed the Chinese economy release of its inflation data, which showed a stability of the growth of inflationary pressures with the annual reading of the consumer price index stabilizing at 2.7%, unchanged from the previous reading of May, in line with expectations, while the annual PPI reading showed stability at zero levels versus 0.6% growth in May, below expectations of 0.2%.
On the other hand, investors are currently waiting for the US economy release of its final reading of the wholesale stocks index, which may show a stable growth of 0.4%, unchanged from the preliminary reading for May and against 0.8% growth in April, in conjunction with the launch of The first half of the Federal Reserve Governor Jerome Powell's semi-annual testimony on monetary policy before the House of Representatives Financial Services Committee.
To the reveal of the last FOMC meeting minutes which was held on June 18-19, during which Federal Reserve policy makers kept benchmark interest rates between 2.25% and 2.50% for the fourth meeting in a row, revealing their forecasts for growth rates, inflation and unemployment as well as future interest rates for the next three years.
The Federal Open Market Committee dropped the word "patient" from its statement and added "we will act as necessary" to preserve the economy, which in turn opened the way for a possible cut in federal interest rates later. That eight members see a reduction this year. Whilst, the average market's forecast did not anticipate any reduction this year.
At a press conference held after the Fed's recent meeting, Fed Governor Powell said that some Fed monetary policy makers believe the issue of soft monetary policy has been strengthened, stressing that the Commission will continue to monitor the developments and economic data closely during the coming period to determine the future Monetary policy depending on those elements.
We would like to point out that Powell noted early this month that the broader market expectations of a federal interest rate cut at the next FOMC meeting will not necessarily be achieved, limiting the chances of a cut in the Federal Reserve at the next meeting by the end of this month, in addition to the markets limiting their expectations for a cut during this month as the US economy has added jobs last month that exceeded expectations.