Silver Edges Up Ahead of Fed Decision Amid Inflation Concerns

Silver prices are edging up on Tuesday, but the precious metal remains under pressure due to a firm US Dollar and elevated US Treasury yields. The white metal is trading around $63.40 at the time of writing, up 0.28% on the day.

The Federal Reserve's monetary policy decision on Wednesday will be closely watched by investors, with expectations of an interest rate hike reinforcing inflationary pressures. Higher bond yields and a strong Dollar are generally negative for Silver, but a less hawkish-than-expected message from the Fed could offer some relief.

Central banks are facing a challenging task in bringing inflation sustainably back toward their targets, especially with rising Oil prices and recent Consumer Price Index (CPI) figures showing a 3.4% year-over-year increase in August. The Producer Price Index (PPI) also accelerated to 5.4% from 4.8% in July.