US Inflation Slows, Silver Prices Pull Back Slightly
The US July Consumer Price Index (CPI) came in as expected at 3.4% YoY, marking a slowdown from the previous reading of 3.5%. This inflation data strengthened the signal for a potential interest rate hike slowdown by the Federal Reserve.
As a result, silver futures prices pulled back slightly, but momentum for a further breakout remained insufficient. In the spot market, demand was weak, with transactions probing further into discount territory.
The Shanghai Gold Exchange Ag(T+D) price assessment for August 13 was 15,938 yuan/kg, with premium/discount quotes ranging from TD-10 to +5 yuan/kg and an average of -2.5 yuan/kg.
Despite the slight correction in silver prices, precious metals futures still saw some upside room due to cooling inflation expectations. However, weak demand trend persisted in the spot market, suppressing downstream purchase willingness.