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.
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.