Silver Extends Decline on Strong US Data

Silver prices fell toward $68 an ounce on Wednesday as investors digested fresh US economic data for clues on the Federal Reserve’s interest-rate outlook. The PCE price index rose 0.2% in July, above expectations for a 0.1% increase, while annual inflation reached 3.7% versus forecasts of 3.6%. Core PCE increased 0.2% month-over-month and 3.3% year-over-year, both in line with estimates. Consumer spending and income also came in slightly above forecasts. Separate data showed US GDP grew 1.5% in Q2, matching the initial estimate, while durable goods orders rose 1.1% in July, beating expectations of 0.5%. Markets are now pricing around a 60% chance of the Fed keeping rates unchanged next month, down from 64% before the data, according to the CME FedWatch Tool. On the geopolitical front, Iran said it had resumed talks with neighboring Oman on managing the Strait of Hormuz, amid mounting economic pressure from US President Donald Trump.

Silver held above $68 an ounce on Wednesday, trading near two-month highs as investors awaited the latest US PCE price index report, the Federal Reserve’s preferred measure of inflation. Attention also remained on Fed Chair Kevin Warsh’s speech at the annual Jackson Hole symposium on Friday, although he is not expected to provide clear guidance on the central bank’s policy decision in September. Investors continued to assess the US Treasury’s decision to double liquidity-support buyback operations for longer-dated notes and bonds, a move that helped push the dollar to a more than three-month low last week. Meanwhile, oil prices declined for a third consecutive session, easing inflation concerns and further supporting the bullish outlook for precious metals. Elsewhere, silver remained underpinned by solid industrial demand linked to the green energy transition, photovoltaic solar panels, electric vehicles and artificial intelligence data center infrastructure.

Silver prices fell below $68.0 an ounce on Tuesday after reaching a two-month high of $70.0 last week, as the recent rally lost momentum ahead of US inflation data and Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole Symposium later this week. Investors are also assessing the US Treasury’s decision to double liquidity-support buyback operations for longer-dated notes and bonds, which helped push the dollar to a more than three-month low last week. Markets are currently pricing in a 38% chance of a US rate hike in September, according to the CME FedWatch Tool. Meanwhile, geopolitical tensions remain in focus, with Iran pledging to resist expanded US sanctions while expressing confidence that major trading partners will reject the pressure campaign and signalling that Washington remains interested in reviving talks.