Silver Prices Sink Below $68 as Markets Await US Inflation Data

The price of silver (XAG/USD) has dropped below $68 per ounce as investors await the release of the US Personal Consumption Expenditures (PCE) price index, a crucial inflation gauge monitored by the Federal Reserve.

This pullback is attributed to profit-taking and a firmer US dollar, which makes dollar-denominated commodities like silver more expensive for foreign buyers.

The upcoming PCE data will provide clarity on the Fed's next policy moves, with economists expecting a year-over-year increase of around 2.7% in the core PCE deflator.

A higher-than-expected reading could reinforce expectations that the Federal Reserve will keep interest rates higher for longer, putting downward pressure on silver prices.