Silver Prices Hold Steady Above $66 Amid Inflation Risks
Silver prices remain above $66 an ounce as investors weigh geopolitical risk and high oil prices against inflation risks. The iShares Silver Trust (NYSE Arca: SLV) fell 0.8% to $59.37, but the physical market is seen as tight.
The upcoming data releases on producer-price and consumer prices will be crucial in determining the direction of silver prices. A cooler inflation print could ease pressure on real yields and let silver's scarcity story retake control, while a hotter print would raise concerns about the Federal Reserve's response.
The Silver Institute forecasts a 46.3 million-ounce deficit this year, but this is seen as support for silver rather than a timing signal. The deficit can draw down available inventories and increase lease rates, making the market more vulnerable to bursts of buying.