Silver Surges on Soft US Economic Data as Rate Hike Chances Slip

Silver prices surged on Monday, reaching nearly $66 an ounce as investors reacted to soft US economic data. The latest numbers showed tame inflation and weaker consumer sentiment, leading markets to reassess expectations for a Federal Reserve interest rate hike.

Data released last week pointed to subdued US inflation, which reduced the likelihood of an imminent Fed rate hike. Investors now see roughly a one-in-three chance of a rate hike in September, down from nearly 50% before the data was released.

Tensions in the Middle East remain elevated, with Israel launching fresh strikes on Lebanon over the weekend and President Donald Trump preparing new economic sanctions aimed at forcing Iran to surrender. However, despite these tensions, oil prices are being kept in check by covertly moved crude through the Strait of Hormuz.