• Silver price rebounds strongly from $29.00 as slower US Retail Sales growth weighs on the US Dollar and bond yields.
• Sluggish US Retail Sales growth has prompted Fed rate-cut bets for September.
• US households cut spending on discretionary items.

Silver price (XAG/USD) bounces back strongly from the crucial support of $29.00 in Tuesday’s American session. The white metal struggles to gain ground even though the United States (US) Retail Sales grew meagrely by 0.1%, slower than expectations of 0.2% after contracting by 0.2% in April, downwardly revised from a stagnant performance.

The US Census Bureau reports that households cut heavily on discretionary items as banks remain reluctant to increase credit growth due to fears of an increase of delinquency costs. Sales at service stations were lower due to soft gasoline prices.

Slower-than-expected Retail Sales growth suggests deepening household crises due to higher interest rates by the Federal Reserve (Fed). This has weighed on the US Dollar (USD) and bond yields. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, surrenders its entire losses and drops to 105.30.