Cooling US inflation data lifts silver outlook as odds of a Fed rate hold in September rise to nearly 60%.
Silver (XAG/USD) traded steady around $65.40 in Asian hours, supported by easing US inflation pressures that reduced expectations for Federal Reserve rate hikes. The July Consumer Price Index (CPI) rose 3.4% year-on-year, down from 3.5% in June, while core CPI fell to 2.5% from 2.6%.
The data reinforced bets for a Fed pause in September, with the CME FedWatch tool showing a near 60% probability of steady rates, up from 30.4% a month ago. Non-yielding assets like silver benefit from lower rate expectations.
Investors now await the US Producer Price Index (PPI) for July, due at 12:30 GMT, for further inflation cues.