Silver Selloff Deepens Amid Rising Inflation Expectations
The price of silver has fallen sharply in recent trading sessions, dropping more than 4% after US Producer Price Index (PPI) data showed a rise in annual producer inflation. The PPI report for August was released today and revealed that annual producer inflation accelerated to 5.4%, up from 4.8% in July.
This increase in inflation has led market expectations for a Federal Reserve rate hike in September to rise to around 70%. The US dollar strengthened, Treasury yields initially moved higher, and precious metals came under pressure as a result of the report's findings.
The price of silver fell by approximately 4.2%, while gold declined by more than 1% following the release of the PPI data. Silver had previously made gains since September 4, but these were erased in today's trading sessions after buyers failed to break above $68.00.