• Silver price holds the crucial support of $29.00 as Fed rate-cut bets surge.
• The expectations for Fed rate-cut increase as progress in the US disinflation process has resumed.
• Investors shift focus to the preliminary US S&P Global PMIs for June.

Silver price (XAG/USD) gains ground above the crucial support of $29.00 in Wednesday’s New York session. The white metal finds buyers amid growing speculation that the Federal Reserve (Fed) will start reducing interest rates from the September meeting.

The expectations for the Fed to begin unwinding its restrictive monetary policy framework rise due to a higher-than-expected United States (US) decline in the Consumer Price Index (CPI) and slower than forecasted growth in Retail Sales data for May. May’s data showed that progress in the disinflation process has resumed, and consumers cut heavily on discretionary spending as high inflation and interest rates by the Federal Reserve (Fed) have reduced the purchasing power of households.

Meanwhile, the market sentiment remains quiet as US markets are closed on Wednesday on account of Juneteenth. The US Dollar Index (DXY) edges down to near 105.20