Silver Rallies Against Gold as Dollar Eases Ahead of CPI Data

The gold-to-silver ratio fell by 1.1% to trade at 65.5, as silver outperformed gold in a stronger recovery following a recent selloff in precious metals.

This move was driven by a softer U.S. dollar, which drew physical buyers back into silver, and market participants squaring positions ahead of the August Consumer Price Index release on Friday.

Silver's dual role as both a monetary and safe-haven asset, as well as its industrial applications in solar panels and electronics, provided a demand floor that helped it from falling as sharply as gold during the rate-driven selloff.

UBS published a note raising its silver price outlook, viewing the current dip as tactical and driven by Fed rate-hike bets pressuring gold.