Silver Prices Plunge 5.6% Amid Hot Inflation Data and Rising Oil Market

Silver prices took a hit on Thursday, plummeting to $64.09 per troy ounce after a hotter-than-expected US producer price report and a surging oil market pushed rate expectations sharply higher.

The August PPI came in at 5.4% year-over-year, topping the 5.3% consensus and accelerating from 4.8% in July. The core reading climbed to 4.6%. As a result, the odds of a Fed rate hike at the September 15-16 meeting jumped from roughly 61% to about 70%, according to CME FedWatch data.

The rising yields and oil shock compounded the pressure on silver prices, with US Treasuries bearing the brunt of the repricing. The 10-year yield pushed to 4.943%, its highest since October 2023, while the 30-year touched 5.37% - a 19-year peak.