Silver Falls Below $65 as Cooling Inflation Bolsters Rate Cut Hopes

Silver prices slipped to a low of $64.82 per ounce, marking a decline from recent highs, but the drop was tempered by fresh data showing easing US inflation.

The latest Consumer Price Index (CPI) report indicated that inflationary pressures are cooling more than economists had projected, which has strengthened expectations for a more accommodative monetary policy stance from the Federal Reserve.

This development is beneficial for non-yielding assets like silver, as it reduces the opportunity cost of holding the metal compared to interest-bearing assets. A potential rate cut could also weaken the US dollar, making dollar-denominated metals more attractive to international buyers.