XAG/USD gains follow softer US inflation data, lifting hopes for Federal Reserve rate cuts later this year.
Silver prices climbed 1.4% on Wednesday after US inflation data showed cooling price pressures, moving closer to the Federal Reserve’s 2% target. The XAG/USD pair advanced as traders increased bets on potential Fed rate cuts in the coming months.
The latest inflation print aligns with recent trends of moderating price growth, though core measures remain above the Fed’s goal. Silver had struggled near its 200-day simple moving average but broke higher on the data, signaling renewed bullish momentum.
Markets are now pricing in a higher probability of a September rate cut, which could further support precious metals.