Bank of America expects inflation to remain above target, and is stepping up lawsuits to keep the Fed stable interest rates. Banks have not seen short-term cuts that contradict the market's expectations for potential cuts in July. Goldman Sachs also anticipates further excavations in areas such as automobiles and homes, but warns that tariff policies could counter these effects.
Despite concerns, some studies suggest that inflation expectations are chilling. The National Federation of Independent Business reported that only 18% of small businesses, the lowest level since late 2021, view inflation as the biggest challenge.
Silver Market Forecast
Silver traders should pay attention to price action around $31.81. A break below this level would increase the likelihood of a $31.17 retest and would go from $30.69 to $30.63 if potential negative side risks increase sales. Meanwhile, if a buyer is convicted and outperformed silver by $31.95, a rally could be rolled out between $32.53 and $32.65.
Macroeconomic factors, including today's CPI report and Powell's testimony, could drive market sentiment. If inflation data is hotter than expected, silver could face rising bond yields and stronger dollar pressures. However, signs of cooling inflation may support precious metals and promote speculation on Fed rate reduction.
Details of the economic calendar.
