Silver Price Jumps as Dollar Weakens Ahead of US Inflation Data

The price of Silver (XAG/USD) has been trading higher at around $67.60 during the Asian session on Thursday, reflecting its strength as the US Dollar is under pressure.

This comes ahead of the United States Producer Price Index (PPI) data for August, which will be published at 12:30 GMT and is expected to show that headline inflation at the factory level accelerated to 5.3% Year-on-Year from 4.7% in July.

A weaker US Dollar makes Silver a favorable risk-reward bet for investors, but signs of price pressures accelerating at the producer level would prompt expectations of Federal Reserve interest rate hikes in the near term, which diminishes the appeal of non-yielding assets like Silver.