Silver Soars as Weaker US Inflation Takes Toll on Dollar

Silver prices rose on Thursday to $58.80 per ounce, up around 1.7%, as softer US inflation data and weaker-than-expected economic growth put pressure on the US Dollar.

The US Core Personal Consumption Expenditures Price Index rose 0.1% MoM in June, below the 0.2% market forecast and slowing from the previous 0.3% increase. On an annual basis, underlying inflation eased to 3.3% from 3.4%. Headline PCE declined 0.1% on the month, following a 0.5% increase previously, while the annual rate slowed to 3.7% from 4.1%

The softer inflation readings reinforced expectations that the Federal Reserve (Fed) could adopt a less restrictive monetary policy stance if price pressure continues to moderate.