Silver Prices Hold Ground Amid Cooling US Inflation
Silver prices have retreated slightly to around $64.73 per ounce after peaking at $66.79 in mid-August 2026, following a rapid price increase that prompted investors to lock in profits.
The recent pullback is largely attributed to investors securing profits after the metal's price surge, but the broader trend remains influenced by shifts in US economic policy.
The primary driver for movement in precious metals is the evolving outlook on the US Federal Reserve's monetary policy. July Consumer Price Index (CPI) data showed that headline inflation cooled to 3.4%, matching market expectations, while core CPI eased to 2.5%.
This disinflationary data has led markets to lower their expectations for aggressive interest rate hikes, with the probability of a 25 basis point hike by the Federal Reserve in September dropping to approximately 35%, down from 55% just a week ago.