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Silver eases near $65 as investors wait for US PPI

Silver was last around $64.90, down 0.6% on the day, with markets cutting their odds of a September Fed hike to 38% from 54% a week earlier.

Reported · Written up by our desk · Precious Metals

Silver traded lower on Thursday around $64.90, slipping 0.6% as investors held back from large positions ahead of the US producer inflation report. FXStreet said the metal was consolidating after a recent advance.

The pullback comes as expectations for less aggressive Fed tightening continue to provide support for silver. Recent US inflation data showed headline CPI slowing to 3.4% year over year in July from 3.5% in June, and core CPI easing to 2.5% from 2.6%.

According to CME FedWatch, markets now assign a 38% chance of a rate hike in September, down from 54% a week earlier. FXStreet noted that the revised policy outlook has also weighed on short-term US Treasury yields, a backdrop that can favor non-yielding assets such as silver.

Attention next turns to the US Producer Price Index for July, due at 12:30 GMT. FXStreet said another sign of easing producer prices could reinforce expectations for rates to stay unchanged, while an upside surprise could revive tightening expectations and pressure the metal.

Latest closeSilver $63.77 ▼0.9%

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