Silver Prices Tumble Amid Rising Oil Costs and Treasury Yields

India's silver market closed lower on Thursday, despite softer US inflation data. Silver prices settled 0.77% lower at ₹2,23,706, offset by elevated oil prices and Treasury yields.

The August PCE price index rose 0.3% month-on-month, below market expectations of 0.4%, easing expectations of an immediate Federal Reserve rate hike. However, several Fed officials continued to support tighter policy amid persistent inflation risks.

Fed Governor Michael Barr said high energy prices and strong AI-related investment have disrupted progress toward the 2% inflation target. New York Fed President John Williams said another rate hike by year-end remains reasonable. Cleveland Fed President Beth Hammack highlighted inflation, government debt, and economic conditions as factors contributing to higher long-term Treasury yields.