Silver Retreats from Seven-Week High Despite Softer Inflation

Silver prices retreated from their seven-week high on Thursday despite softer U.S. inflation data, which has strengthened expectations for easier monetary policy.

The latest report from the U.S. Bureau of Labor Statistics showed that consumer prices rose only 0.1 percent in July, with annual inflation easing to 3.4 percent from 3.5 percent in June.

Core prices, which exclude volatile food and energy costs, increased 0.2 percent during the month and 2.5 percent annually.

Tavi Costa, macro strategist at Crescat Capital, noted that mining equities have begun outperforming the underlying metal.