Silver Prices Steady Ahead of Key Data

Silver prices held near $60.1 an ounce on Tuesday as oil prices ended a three-session rally and the US dollar weakened. Investors remained focused on upcoming US economic data, with September CPI due Wednesday, followed by PPI and retail sales on Thursday. Fed Chair Kevin Warsh’s appearance at the IMF-World Bank annual meetings on Friday will also be closely watched for further clues on the monetary policy outlook. According to CME’s FedWatch tool, traders see less than a 20% chance of a rate hike this month, while the probability of an increase in December exceeds 85%. Meanwhile, Cleveland Fed President Beth Hammack said the central bank should move “relatively quickly” toward a more restrictive monetary policy stance to bring inflation under control.

Silver fell toward $60 an ounce on Tuesday, extending losses from the previous session as the US dollar climbed to an 18-month high ahead of key inflation reports that could shape the Federal Reserve’s next interest rate decision. The US consumer price index is due on Wednesday, followed by producer inflation data on Thursday. Markets are pricing in roughly an 80% probability that the Fed will leave interest rates unchanged this month, while assigning nearly an 88% chance of a rate hike in December. Investors also monitored geopolitical tensions as the US considers joining Saudi Arabia in its campaign against Iran-backed Houthi militants in Yemen, while the recently announced Russia-Ukraine “energy ceasefire” has already been violated. These developments have kept oil prices elevated, fueling inflation concerns and increasing expectations of further interest rate hikes.

Silver fell to around $60.3 an ounce on Monday as a firm US dollar pressured the metal, while investors awaited key economic data that could shape the Federal Reserve’s interest-rate outlook. The dollar remained near its strongest level in 18 months, supported by escalating Middle East tensions and caution ahead of this week’s US consumer and producer inflation reports and retail sales figures. Stronger-than-expected data could reinforce expectations of tighter monetary policy, lifting Treasury yields and the dollar and adding further pressure on silver. Markets have scaled back expectations for a Fed rate hike this month, pricing in less than a 20% chance of an increase, while assigning an 85% probability of a hike by December, according to CME’s FedWatch tool. Investors will also watch this week’s IMF-World Bank annual meetings for further clues from global central bankers on the monetary policy outlook.