XAG/USD gains 2.18% after July CPI matches forecasts, weakening the US Dollar and Treasury yields.
Silver prices climbed 2.18% to around $66.00 on Wednesday, driven by a softer US Dollar and lower Treasury yields following the release of US inflation data. The Consumer Price Index rose 0.1% month-over-month in July, aligning with expectations, while the annual rate eased to 3.4% from 3.5% in June.
Core inflation, excluding food and energy, increased 0.2% month-over-month and 2.5% year-over-year, also matching forecasts. The US Dollar Index dipped slightly, and the 2-year Treasury yield fell by about four basis points to near 4.18%, reducing the opportunity cost for non-yielding assets like silver.
Geopolitical uncertainty and a weaker USD further supported demand for the metal. However, inflation remains above the Federal Reserve’s 2% target, keeping monetary policy expectations restrictive.