Silver Price Slips Ahead of US Inflation Report Amid Ongoing Volatility
Silver's price retreated on Tuesday as investors locked in gains ahead of a key US inflation report. The metal had risen to a seven-week high, but then trimmed its advance by around 1% to trade near $65 an ounce.
The recent run has lifted silver about 12% in little over a week and almost 13% higher over the past month. However, it remains below its January record.
Investors are weighing two opposing forces: higher oil prices due to tensions around the Strait of Hormuz, which could revive inflation and keep interest rates high, and softer US employment data that has bolstered expectations for easier monetary policy and pressured the dollar.
The next major test arrives on Wednesday with the release of July consumer-price data. A stronger-than-expected reading could weigh on silver, while softer inflation could reinforce expectations for lower rates.