Silver Edges Lower Ahead of Key US Economic Releases
Silver edged lower to around $60.7 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.
7 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.