Silver Surges Amid Dollar Weakness
The Silver price (XAG/USD) rose to near $66.40 during the Asian trading session on Wednesday, a gain of almost 1%. The surge in Silver follows a decline in the US Dollar Index (DXY), which fell slightly to around 98.76. This makes Silver a more attractive risk-reward bet for investors.
The Federal Reserve's (Fed) upcoming policy meeting next week is still on track to raise interest rates, with traders seeing a 60% chance of this happening. A strong US Nonfarm Payrolls (NFP) report in August has contributed to hawkish Fed bets.
However, investors are waiting for the release of the US Consumer Price Index (CPI) data for August on Friday. TD Securities projects that core inflation will continue to moderate, with a 2.3% year-over-year increase, down from July's 2.4%. Headline inflation is expected to remain unchanged at 3.4%.