Silver Prices Surge Amid Treasury Liquidity Boost, Hawkish Inflation Data Looms
The price of silver has surged to near $68 per ounce, driven by a Treasury Department liquidity boost and short-covering. However, this momentum was tempered by a hotter-than-expected inflation reading that threatens to keep the Federal Reserve on a tightening path.
The PCE price index, the Fed's preferred inflation gauge, rose 3.7 percent year-over-year in July, overshooting economist forecasts. This hawkish data sent silver prices down 0.77 percent to $68.14 on Wednesday evening, but it remains well above its 50-day moving average of $61.25.
The structural scarcity of silver is a key driver of the metal's price action. The World Silver Survey 2026 confirmed a fifth consecutive annual deficit of 40.3 million ounces for 2025, with analysts projecting an even tighter shortfall of 46.3 million ounces this year.