Silver Surges as Weaker US Inflation and Economy Bite Dollar

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

The Core Personal Consumption Expenditures Price Index rose only 0.1% month-over-month in June, below the 0.2% market forecast, while underlying inflation eased to 3.3% from 3.4% annually.

US economic growth also disappointed, with Gross Domestic Product expanding at an annualized rate of 1.5% in the second quarter, falling short of expectations of 2.1%. However, the GDP Price Index surged 6.3%, indicating some inflationary pressure remains elevated.