XAG/USD rises 0.37% to $64.70 as US inflation data reduces expectations for further Fed tightening.
Silver (XAG/USD) advanced 0.37% to $64.70, recovering from recent losses as markets dialed back bets on Federal Reserve rate hikes. The move follows softer US inflation readings, with the Producer Price Index slowing to 4.7% YoY and Core PPI at 4.2%.
Expectations for a September rate hike fell to 35%, down from 40% post-PPI release and significantly lower than late-July levels. Lower rates reduce the opportunity cost of holding non-yielding assets like silver, supporting prices.
Fed officials remain split, with some citing temporary inflation factors while others push for further tightening. Geopolitical tensions in the Middle East continue to weigh on sentiment, capping broader optimism.