Silver Stalls as Inflation Data Falls Flat

Silver prices seemed unaffected by the latest US inflation data, which showed headline PCE at 0.2% against an expected 0.1%. Yearly headline inflation remained stuck at 3.7%, and the GDP price index was revised up to 6.4% from 6.2%. Headline durables smashed expectations with a 1.1% increase, but silver didn't budge.

The metal's lack of reaction is puzzling, given that it typically reacts strongly to inflation data. However, the bond market spiked on the news, and silver bounced anyway, likely due to short covering. This bounce may not have staying power, as the Fed is unlikely to back off with income at 0.4%.

Warsh has a mixed report to consider ahead of his speech at Jackson Hole this Friday, which could flip the market's reading on silver. The metal has been range-bound for four sessions under $70.02, and the PCE data did not break the range.