Silver Retreats Ahead of US Inflation Report Amid Rate-Cut Hopes

Silver prices retreated on Tuesday as traders took a cautious stance ahead of the US core PCE price index report, a key inflation gauge for the Federal Reserve.

The metal's decline to $24.50 per ounce marks a pullback from its two-week high earlier this week, but analysts note that underlying support remains intact due to rate-cut expectations and safe-haven demand.

A higher-than-expected reading in the PCE report could dampen rate-cut hopes, putting pressure on silver, while a softer print would reinforce the case for monetary easing and provide fresh upside momentum.

Physical demand for silver remains robust, particularly from the solar panel industry, which uses silver in photovoltaic cells, and geopolitical tensions have sustained safe-haven buying.