Silver Price Forecast XAG/USD consolidates around $30.50 as US PCE inflation takes center stage

Silver price oscillates around $30.50 as the focus shifts to US PCE inflation data for October.

The US Dollar refreshes weekly low ahead of the US PCE inflation data release.

The safe-haven appeal of the Silver price weakens as the ceasefire between Israel and Iran comes into effect.

Silver price (XAG/USD) exhibits indecisiveness near $30.50 in Wednesday’s European session, with investors focusing on the United States (US) Personal Consumption Expenditure Price Index (PCE) data for October, which will be published at 15:00 GMT.

Investors await the US PCE inflation data to get more insights about the Federal Reserve’s (Fed) interest rate action in the December meeting. The possibility for the Fed to cut interest rates by 25 basis points (bps) to 4.25%-4.50% next month has increased to 66% from 56% a week ago, according to the CME FedWatch tool.

Investors will pay close attention to the core PCE inflation data – which excludes volatile food and energy prices – as it is the Fed’s preferred inflation gauge. Economists expect the annual core PCE inflation to have accelerated to 2.8% from 2.7% in September, with monthly figures growing steadily by 0.3%.