• Silver price may appreciate due to the dovish sentiment surrounding the Fed.
• A rocket strike in the Israeli-occupied Golan Heights has supported the safe-haven Silver.
• The dismal economic outlook in China could have exerted pressure on the Silver demand.

Silver price (XAG/USD) offers its intraday gains, holding position around $28.00 per troy ounce during the European trading hours on Monday. Non-yielding assets like Silver gain ground as the latest US inflation figures have reinforced expectations that the Federal Reserve (Fed) will begin cutting interest rates in September. Additionally, signs of cooling inflation and easing labor market conditions in the United States (US) have heightened expectations of three rate cuts by the Fed in 2024.

On Friday, the US Personal Consumption Expenditures (PCE) Price Index showed a modest increase in inflation for June, offering further signs of easing price pressures. The PCE Price Index rose by 2.5% year-over-year in June, slightly down from 2.6% in May, aligning with market expectations. On a monthly basis, the PCE Price Index increased by 0.1% after remaining unchanged in May.

Additionally, the rise in safe-haven Silver is driven by concerns over a potential escalation in the Middle East following a rocket strike in the Israeli-occupied Golan Heights. Israel and the United States (US) have attributed the strike to the Lebanese armed group Hezbollah, according to Reuters.