Silver Rises More than 2% This Week

Silver rebounded to around $65 an ounce on Friday after falling 1.4% in the previous session, bringing its weekly gain to more than 2%. Softer-than-expected US inflation data suggested that the impact of energy-price shocks linked to the Iran conflict eased in July, reducing pressure on the Federal Reserve to adopt a more aggressive monetary stance. Investors will now focus on upcoming US employment data and comments from Fed Chair Kevin Warsh at the Jackson Hole symposium later this month. Meanwhile, renewed tensions in the Middle East could push energy prices higher and revive inflation concerns, creating uncertainty for precious metals. Beyond monetary policy and geopolitical developments, silver continues to benefit from strong industrial demand, particularly from solar-panel production and investment in electricity grids. Chinese imports of silver-bearing ores surged 62.5% year-on-year in June to 219,000 tonnes.

Silver fell below $64 an ounce on Friday, extending losses from the previous session as investors took profits while assessing the Federal Reserve’s policy outlook and developments in the Middle East. Data released Thursday showed US core producer prices increased less than expected in July, offering further evidence that inflationary pressures are not broadly intensifying following Wednesday’s subdued CPI report. The softer price data reduces pressure on the Fed to raise interest rates in the near term, with markets now pricing in around a 35% chance of a 25 basis point rate hike in September, down from 55% a week earlier. Meanwhile, diplomatic efforts to reopen the Strait of Hormuz remain deadlocked, keeping investors cautious over the risk of an escalation that could drive energy prices higher and reignite inflationary pressures.

Silver fluctuated around $65 an ounce, near the highest since June 22, as softer US inflation data reinforced expectations that the Federal Reserve will leave interest rates unchanged next month. US producer-price inflation eased more than expected in July, helped by lower energy and food costs, providing further evidence that price pressures are not broadly accelerating. However, renewed tensions in the Middle East remain a risk, as any disruption could push energy prices higher and revive inflationary pressures. Oil is heading for a weekly gain as traders continue to monitor efforts by the US and Iran to end the conflict and reopen the Strait of Hormuz. 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.