Silver prices stabilized above $56 per ounce on Thursday, recovering from a steep decline in the prior session. The shift came as crude oil prices ended a five-day rally, reducing pressure on other markets. However, investors remain cautious due to expectations of more aggressive rate hikes by the Federal Reserve, spurred by unexpectedly high inflation data.
The US Consumer Price Index climbed to 3.7% in September, marking its highest level in four months and surpassing market projections of 3.6%. Rising energy costs were the primary driver behind the increase. Federal Reserve Bank of Chicago President Austan Goolsbee labeled the figures "discouraging" and warned that the rapid growth of artificial intelligence infrastructure could further overheat the economy.
Meanwhile, San Francisco Fed President Mary Daly suggested that while further rate hikes might be necessary, there is no urgent need for an increase at the upcoming meeting.