Silver Edges Higher on Tame US Inflation Data

Silver rose to around $66 an ounce on Thursday, hovering near seven-week highs as relatively stable US consumer inflation reduced pressure on the Federal Reserve to raise interest rates in the near term. Data released Wednesday showed US consumer inflation slowed for a second consecutive month to 3.4% in July, while rising just 0.1% from the previous month. Investors now await producer inflation data due later in the global day for further clues on the trajectory of price pressures. Markets now see around a 40% chance of a 25 basis point rate hike from the Fed in September, down from nearly 50% a day earlier. Precious metals also drew support from a pullback in oil prices as investors assessed the prospects of a deal to reopen the Strait of Hormuz. However, escalating rhetoric between the US and Iran amid deadlocked negotiations reduced the likelihood of an imminent agreement.

Silver climbed toward $66 an ounce on Wednesday, reaching its highest level in eight weeks, as US inflation data broadly matched expectations and reduced concerns about an imminent Federal Reserve rate hike. Core consumer prices rose 0.2% month-on-month and 2.5% year-on-year in July, supporting expectations that the Fed may maintain a more cautious approach to monetary policy. Meanwhile, investors continued to monitor developments around the Strait of Hormuz, with Pakistan’s defense minister saying the US and Iran were “close to some sort of arrangement” to reopen the key waterway. President Donald Trump, however, claimed the US had “total control” over the strait, highlighting continued uncertainty. Beyond monetary policy and geopolitical risks, silver continued to benefit from robust industrial demand, particularly from expanding solar-panel manufacturing and electricity-grid investment. Chinese imports of silver-bearing ores jumped 62.5% year-on-year in June to 219,000 tonnes.

Silver climbed toward $66 an ounce on Wednesday, reversing losses from the previous session as investors prepared for key US inflation data that could provide fresh clues on the Federal Reserve’s policy outlook. Markets remain divided over whether the Fed will raise rates by 25 basis points in September after keeping them unchanged in July, with rising oil prices reinforcing a hawkish bias. Meanwhile, traders assessed the prospects of a US-Iran deal to reopen the Strait of Hormuz amid shifting signals. Pakistan’s defense minister said Washington and Tehran are “close to some sort of arrangement” over the strait, while reports indicated that talks between Iran and Oman have reached an advanced stage. Elsewhere, silver remained supported by solid industrial consumption, particularly from expanding solar panel manufacturing and electricity grid development. Recent data showed Chinese imports of silver-bearing ores jumped 62.5% year-on-year in June to 219,000 tonnes.