Silver Eyes $68 as Fed Rate-Hike Bets Ease

Silver prices have been consolidating with an upward bias due to receding probability of Fed rate hikes, improving ETF flows, and a pullback in oil prices. The spot silver price rose to $66.79 on August 11, its highest level since June 22. However, it has declined by 0.90% to $64.73 as of the writing on August 13.

The US CPI report for July showed a disinflationary trend, with headline CPI edging lower from 3.5% in June to 3.4% in July. The core CPI also cooled from 2.6% in June to 2.5% in July. This has led to a decline in the probability of Fed rate hikes for its September FOMC meeting and year-end.

The International Energy Agency (IEA) has revised its Q3 oil deficit higher, but sees the oil market tipping into a surplus of 4.6 mbpd in 2027. It forecasts oil demand contracting by 1.6 mbpd in 2026, the fastest pace since the 2020 pandemic.

Traders are expected to buy dips with a stop loss below $62.90 for a target of $68 as spot silver is expected to consolidate its gains after rising 12% last week.