Silver Holds Firm Near $65 as Inflation Eases

Silver prices held steady near recent highs of $65 an ounce, as softer US inflation data reinforced expectations that the Federal Reserve will leave interest rates unchanged next month.

The US producer-price inflation eased more than expected in July, driven by lower energy and food costs, which is further evidence that price pressures are not broadly accelerating.

Renewed tensions in the Middle East remain a risk, as any disruption could push energy prices higher and revive inflationary pressures.

Oil is heading for a weekly gain as traders continue to monitor efforts by the US and Iran to end the conflict and reopen the Strait of Hormuz.

Silver continues to benefit from robust industrial demand, particularly from expanding solar-panel manufacturing and electricity-grid investment. Chinese imports of silver-bearing ores jumped 62.5% year-on-year in June to 219,000 tonnes.