Silver steadies near $66 ahead of US inflation data
Silver traded cautiously around $66 an ounce as investors weighed expected Fed rate hikes against a weaker dollar ahead of key US inflation releases. Oil hit multi-week highs after Middle East tensions, while jobs data boosted rate-hike pricing.
Silver traded near $66 an ounce on Tuesday as investors weighed expectations of a Federal Reserve rate hike against a weaker dollar ahead of key US inflation data later this week. Rising oil prices also added to inflation worries, with crude extending gains to multi-week highs amid escalating Middle East tensions after Yemen’s Iran-backed Houthis attacked energy facilities and cities in Saudi Arabia, a key US ally. Friday’s stronger-than-expected jobs report pointed to a firmer labor market, prompting traders to price in roughly a 60% chance of a Fed rate hike at the September meeting.
Investors are now awaiting producer price data on Thursday and consumer inflation figures on Friday for further clues on the Fed’s policy outlook.