• Silver price exposes to more downside below $29.40 as the US Dollar bounces back.
• Fed Bowman sees interest rates remaining at their current levels this year.
• Investors await the US core PCE inflation for fresh guidance.

Silver price (XAG/USD) slumps to near lower end of Monday’s trading range near $29.40 in Tuesday’s New York session. The white metal faces selling pressure as the US Dollar (USD) has bounced back strongly after correcting on Monday. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, rebounds from 105.40.

The US Dollar recovers as investors become doubtful over the Federal Reserve’s (Fed) interest rate outlook. Currently, financial markets expect that the Fed will start reducing interest rates from the September meeting and subsequent rate cuts will be announced in the November or December meeting.

However, Fed policymakers argue in favor of maintaining interest rates at their current levels until they see inflation declining for months. In Tuesday’s New York session, Fed Governor Michelle Bowman said in an interview that she doesn't see any rate cut this year. Bowman added that rate cuts at this point are inappropriate, and the option of more rate hikes remains on the table if progress in the disinflation process appears to stall or reverse in the future.