Silver Stalls at $65 as Traders Weigh Fed Rate Outlook

Silver prices have been struggling to break above $65, despite last week's strong breakout. This is due to traders assessing the Federal Reserve's interest rate outlook amid risks on both sides of its dual mandate.

The US labour market is showing signs of weakness, while inflation risks remain tilted to the upside. The white metal climbed to its highest level since June 23 after weaker-than-expected US Nonfarm Payrolls (NFP) data prompted traders to scale back expectations for a September Fed rate hike.

A softer-than-expected reading in Wednesday's US Consumer Price Index (CPI) data could further reduce Fed rate hike bets and support the non-yielding metal. Conversely, hotter inflation could revive expectations for a rate increase.