Cooling US inflation data reduces expectations for Fed tightening, capping losses in silver despite a 0.64% daily decline.
Silver (XAG/USD) fell to $64.90 on Thursday, down 0.64% as investors awaited US producer inflation data. The pullback follows a recent rally, with traders hesitant to take large positions ahead of key economic releases.
US inflation eased in July, with headline CPI slowing to 3.4% YoY from 3.5% in June, while core CPI dipped to 2.5% from 2.6%. The data reinforced expectations that the Federal Reserve may pause rate hikes, reducing pressure on non-yielding assets like silver.
Markets now price a 38% chance of a September rate hike, down from 54% a week earlier, according to the CME FedWatch Tool. Lower Treasury yields also supported silver, though upcoming PPI data could shift sentiment if inflation surprises to the upside.