Silver Rebounds as US Inflation Expectations Ease

The price of silver (XAG/USD) has recovered some losses after recent corrections, gaining 0.37% on Friday to trade around $64.70 at the time of writing.

This rebound comes as easing expectations of monetary tightening in the United States (US) and lower inflation data have reduced the likelihood of further interest rate hikes by the Federal Reserve (Fed).

The Producer Price Index (PPI) slowed to 4.7% YoY, while the Core PPI came in at 4.2%, supporting the view that price pressures are beginning to ease.

Fed officials remain divided, with Chicago Fed President Austan Goolsbee arguing for a patient approach and Cleveland Fed President Beth Hammack calling for further rate hikes to ensure price stability.