Silver (XAG/USD) comes under selling pressure on Wednesday as the US Dollar (USD) strengthens following the latest United States (US) inflation data.
At the time of writing, XAG/USD trades around $67.79, down nearly 1.26% on the day
The headline Personal Consumption Expenditures (PCE) Price Index rose 0.2% MoM in July, above the 0.1% forecast, while the annual rate held steady at 3.7%, exceeding expectations of 3.6%. Meanwhile, core PCE inflation increased 0.2% MoM and 3.3% YoY, matching market expectations. The upside surprise in headline inflation gives the US Dollar a modest lift after its recent weakness.
The US Dollar Index (DXY), which tracks the US currency against a basket of six major currencies, trades around 99.20, up nearly 0.30% on the day. Even so, the data did little to change expectations for the Federal Reserve’s (Fed) September meeting as traders focused on the in-line core readings. According to the CME FedWatch Tool, markets see a roughly 65% chance that the central bank will leave interest rates unchanged next month.