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Silver eases near $58 as traders cut hawkish Fed odds

CME FedWatch shows the chance of a Fed rate hike this month fell to 16.6% from 41.7% after June CPI, while US Iran-related oil price strength may cap gains for silver.

Reported · Written up by our desk · Major Pairs

Silver prices (XAG/USD) slipped about 0.6% to around $58.00 in European trading on Wednesday, as investors dialed back expectations for a hawkish Federal Reserve.

FXStreet reports that the move followed the latest US Consumer Price Index data for June, with headline inflation easing to 3.5% year on year and core inflation falling to 2.6%.

CME FedWatch indicated the odds of a rate increase this month dropped to 16.6% from 41.7% recorded on Monday, a dynamic that can support non-yielding assets like silver.

The same outlook can be tempered by higher oil prices tied to renewed exchange of attacks between the United States and Iran, and investors are now set to watch the US Producer Price Index for June later in the session.

Latest closeSilver $59.08 ▲2.5%

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