XAG/USD gains 1.1% as traders await inflation figures that may influence Federal Reserve policy decisions.
Silver prices climbed 1.1% to $65.40 in Asian trading as investors focused on upcoming US Consumer Price Index data for July. The report, due at 12:30 GMT, is expected to show headline inflation easing to 3.4% year-on-year from June’s 3.5%, while core inflation may dip to 2.5% from 2.6%.
Markets are pricing in a potential shift in Federal Reserve policy, following recent warnings from officials about persistent inflation risks. The Fed has reiterated its commitment to achieving a 2% inflation target, though rising oil prices and Middle East supply disruptions could cap silver’s upside.
Shipping traffic through the Strait of Hormuz, a critical energy supply route, has plummeted to just six vessels daily, down from pre-war levels of 130-140. Meanwhile, the CME Group announced 24-hour trading for its 100-ounce silver futures.