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Silver holds near $65.40 as bets on Fed rate cuts improve
A cooler US CPI print lifted expectations that the Fed is less likely to hike in September, according to CME FedWatch odds.
Silver prices for XAG/USD traded in a tight range around $65.40 in Asian trading, with the move supported by signs that US inflation pressures are easing.
On Wednesday, the US Bureau of Labor Statistics reported headline CPI cooled to 3.4% year-on-year in July from 3.5% in June, while core CPI also fell to 2.5% year-on-year from 2.6%, as expected. FXStreet said this reduced near term fears of additional Federal Reserve interest rate hikes.
As a result, CME FedWatch odds of the Fed holding policy rates steady at the September meeting rose to nearly 60% from 30.4% a month earlier. FXStreet also noted traders will look ahead to July US Producer Price Index data due at 12:30 GMT.
The article said XAG/USD remained above the 20 day EMA at $61.66, while RSI(14) at 61.17 stayed in positive territory without signaling overbought conditions, keeping a constructive near term bullish bias. FXStreet added that a break above $66.59 could help extend gains toward the June 16 high of $71.19.
Latest closeSilver $59.48 ▼0.7%