Silver Price Stabilizes Ahead of Crucial US Inflation Data Release

The silver price has begun the week on a flat note around $63.50 during the Asian trading session, struggling to find direction as it hovers close to its almost seven-week high of $65.16 posted on Friday.

With the US Consumer Price Index (CPI) data for July set to be released on Wednesday, bullions are expected to face heightened volatility.

The CPI data is likely to have a significant impact on Federal Reserve interest rate expectations, as officials signaled in their recent monetary policy statement that they are committed to bringing inflation down to the 2% target.

Higher US inflationary pressures increase the risk of Fed interest rate hikes, which could be negative for non-yielding assets like silver.