Silver Price Sees Relief as Inflation Fears Ease

The silver price (XAG/USD) is trading around $65.40 during the Asian session on Thursday, as investors await further data on US inflation.

According to the latest Consumer Price Index (CPI) report from the US Bureau of Labor Statistics, headline CPI growth cooled down to 3.4% Year-on-Year (YoY) in July, while core CPI also arrived lower at 2.5% YoY.

The slowdown in inflationary pressures has eased fears of Federal Reserve interest rate hikes, with the odds of the Fed holding policy rates steady in September increasing to almost 60% from 30.4% a month ago.

This scenario is boding well for non-yielding assets like silver, which could see its price rise further if inflation remains under control.