• Silver price remains below $28.00 as expectations for Fed big interest-rate cut diminishes.
• US headline and core inflation decelerated one-tenth to 2.9% and 3.2%, respectively, in July.
• The next trigger for the Silver price will be the monthly US Retail Sales, scheduled for Thursday.

Silver price (XAG/USD) exhibits a subdued performance near $28.00 in Wednesday’s New York session. The white metal faces pressure as market expectations for the Federal Reserve (Fed) big interest-rate cut announcement in September have waned after the release of the United States (US) Consumer Price Index (CPI) report for July.

According to the CME FedWatch tool, the probability for reduction in key borrowing rates by 50 basis points (bps) has declined to 41.5% from 54% in September after the release of the inflation report. However, the data gives a clear signal that the Fed will cut interest rates next month.

The CPI report showed that annual headline and core inflation, which excludes volatile items such as food and energy, decelerated by one-tenth to 2.9% and 3.2%, respectively. The decline in price pressures was broadly in line with market consensus. The month-on-month headline and core inflation also rose by 0.2%, as expected.