Silver Squeezed Between Bullish Fundamentals and Cautious Profit-Taking
The silver market is experiencing a tug-of-war between bullish fundamentals and cautious profit-taking.
A US producer price report showed no change in prices, while consumer price data revealed a modest cooling in inflation from 3.5% to 3.4% year-over-year.
This should be supportive for precious metals, but gold and silver prices still fell due to profit-taking, with spot silver slipping to $64.62 per ounce after a brief consolidation near $64.29.
The Federal Reserve's policy picture is uncertain, with the CME FedWatch tool assigning only 33% probability to a September rate hike, down from 55% a week earlier.
Cleveland Fed President Beth Hammack reiterates her call for an immediate rate increase to drag inflation back towards the 2% target, while Richmond Fed President Barkin counsels patience.