Silver Steadies Ahead of US Inflation Report Amid Hawkish Bias

Silver prices steadied near $65 an ounce on Wednesday, after declining in the previous session. Investors were preparing for key US inflation data that could provide clues on the Federal Reserve's policy outlook.

Markets are divided over whether the Fed will raise rates by 25 basis points in September, following July's unchanged rate decision. Rising oil prices have reinforced a hawkish bias among some traders.

Traders are also assessing the prospects of a US-Iran deal to reopen the Strait of Hormuz, amid shifting signals. Pakistan's defense minister said Washington and Tehran are 'close to some sort of arrangement' over the strait, while reports indicated that talks between Iran and Oman have reached an advanced stage.

Silver remains supported by solid industrial consumption, particularly from expanding solar panel manufacturing and electricity grid development. Recent data showed Chinese imports of silver-bearing ores jumped 62.5% year-on-year in June to 219,000 tonnes.