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Silver prices (XAG/USD) extended their upward momentum for the second consecutive session on Wednesday, trading near the $68.80 per troy ounce mark during European trading hours. The precious metal is drawing strength from steady buying interest as market participants position themselves ahead of crucial US economic indicators, particularly the upcoming Personal Consumption Expenditures (PCE) price index. The recent rise in silver highlights a growing appetite for precious metals as investors seek hedges against potential inflationary pressures and currency fluctuations. The PCE inflation index, being the Federal Reserve's preferred measure of inflation, is expected to play a pivotal role in shaping market expectations regarding future monetary policy and interest rate trajectories in the United States. Moving forward, market participants will closely monitor the PCE report release to gauge the dollar's direction and its impact on precious metal yields. A softer inflation reading could provide additional bullish momentum for silver, potentially pushing it above the key $69.00 resistance level, while a hotter reading might trigger short-term profit taking.
