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Silver jumps after US inflation meets expectations

Silver was up 2.18% on the day around $66.00 as the US dollar eased and Treasury yields fell after July CPI data.

Reported · Written up by our desk · Major Pairs

Silver prices rose sharply on Wednesday, accelerating after US inflation data matched market expectations. At the time of writing, XAG/USD was trading around $66.00, up 2.18% on the day.

FXStreet said the move was tied to a softer US dollar and declining Treasury yields following the latest CPI release. The US Consumer Price Index rose 0.1% month over month in July after falling 0.4% in June, while the annual rate eased to 3.4% from 3.5%. Core CPI increased 0.2% MoM and 2.5% YoY, also in line with forecasts.

Lower yields and a weaker greenback reduced the opportunity cost for non-yielding precious metals, helping silver gain. FXStreet noted that the 2-year Treasury yield fell about four basis points to near 4.18% after the data.

The article also pointed to ongoing geopolitical uncertainty supporting safe-haven demand, including tensions in the Middle East that could keep oil prices elevated. FXStreet added that expectations for a September rate hike fell to about 38% from 44% ahead of the CPI release, according to the CME FedWatch Tool.

Latest closeSilver $64.92 ▼0.3%

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