XAG/USD rallies 2.47% as softer US economic data reduces expectations for a September Fed rate increase.
Silver prices climbed to $66.30, marking a 2.47% gain, as the US Dollar weakened amid shifting Federal Reserve policy expectations. The metal rebounded from Friday’s low of $63.50, supported by softer US economic indicators.
Recent data showed US Retail Sales fell 0.6% in July, missing forecasts for a 0.1% rise, while June’s gain was revised to 0.2%. Weaker CPI, PPI, and Nonfarm Payrolls reports further fueled bets against a September rate hike. Markets now assign a 70% probability to unchanged rates, up from 48% a week ago.
The US Dollar Index (DXY) dropped to 99.30, its lowest since June 5, making dollar-denominated assets like silver more attractive to foreign investors.