• Silver price weakens as the US Dollar and bond yields recover.
• The Fed is expected to cut interest rates by 50 bps in September.
• Investors’ concerns over Silver’s demand as a metal have deepened.

Silver price (XAG/USD) skids below the crucial support of $27.00 in Tuesday’s European session. The white metal weakens as investors worry about the growing demand for Silver as a metal, which has applications in various industries, such as Electric Vehicles (EV), Renewable Energy, wires and cables, etc.

Market participants remain concerned over fears of a global slowdown as major economies face a slump in domestic demand. After China and the Eurozone, investors worry that the United States (US) could enter a recession due to the long maintenance of a restrictive monetary policy framework by the Federal Reserve (Fed). This has boosted expectations that the Fed will announce rate cuts sooner rather than later.

Financial markets expect the Fed to cut its key borrowing rates by 50 basis points (bps) to 4.75%- 5.00% in the September meeting and reduce interest rates by more than 100 bps this year.