Silver Surges Above $65 Ahead of US Inflation Data

Silver prices have broken above $65 ahead of U.S. inflation data releases, with industrial demand and safe-haven factors jointly supporting higher prices.

The market is expecting a slight easing in July's Consumer Price Index (CPI) year-over-year growth rate to 3.4%, down from June's 3.5%. However, if inflation proves stronger than expected, the Federal Reserve may maintain a restrictive stance, potentially capping silver's upside.

Fed Chair Kevin Warsh previously stated that inflation still faces upside risks and that the policy committee will continue to work to bring inflation back toward its 2% target. This suggests that markets must remain attentive to future inflation trends and the pace of interest-rate adjustments.