Silver edges higher near seven-week highs after tame US inflation
Silver rises to around $66 an ounce near seven-week highs after US consumer inflation slows to 3.4% in July and increases 0.1% month-on-month, with markets awaiting producer inflation later.
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. 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.