Silver rises toward $66 as dollar weakens before US inflation data

Silver edged up to $66 an ounce on Wednesday as the US dollar weakened and investors assessed renewed inflation risks tied to escalating Middle East tensions ahead of key US inflation data. The dollar fell to a four-month low, with markets focused on producer-price data due Thursday and the consumer price index on Friday, which are expected to offer the final major clues before the Fed’s September 16 policy meeting. Oil prices climbed to their highest level in more than three months as US-Iran tensions intensified.

Iran’s Revolutionary Guard said it fired ballistic missiles at a US military-linked base in Jordan and attacked 10 ships on Wednesday, after Washington said it had destroyed five Iranian oil tankers. Markets are pricing in around a 60% chance of a Fed rate hike at next week’s meeting.