Silver Soars 1.3% Amid Inflation Fears and Iran Conflict

Silver Spot (XAG/USD) has rallied 1.3% to $64.396 per troy ounce, rebounding from an intraday low of $62.9965, its weakest level in over three weeks.

The metal's price surge comes ahead of the release of the US August Consumer Price Index report, which is expected to provide key insights into inflationary pressures before the Federal Reserve's September 15-16 policy meeting.

Traders bought the dip on Thursday after US producer prices accelerated in August, with energy costs pushed higher by the Iran conflict. This led markets to price in a roughly 71% probability of a 25-basis-point Fed rate increase next week.