Silver prices advance toward $58.80 per ounce on Thursday, gaining around 1.7% as softer United States inflation data and weaker-than-expected economic growth place pressure on the US Dollar.
The US Core Personal Consumption Expenditures Price Index rose 0.1% MoM in June, below the 0.2% market forecast and slowing from the previous 0.3% increase
On an annual basis, underlying inflation eased to 3.3% from 3.4%. Headline PCE declined 0.1% on the month, following a 0.5% increase previously, while the annual rate slowed to 3.7% from 4.1%. The softer inflation readings reinforced expectations that the Federal Reserve (Fed) could adopt a less restrictive monetary policy stance if price pressure continues to moderate.
US economic growth also disappointed. Gross Domestic Product (GDP) expanded at an annualized rate of 1.5% in the second quarter, below expectations of 2.1%. However, the GDP Price Index surged 6.3%, well above the 3.6% forecast, indicating that some inflationary pressure remains elevated.