Weakened Dollar Supports Silver Ahead of Key US Inflation Data
Silver prices rose in India as a subdued dollar supported demand ahead of key US inflation data. The U.S. Treasury's buyback support plan pushed the dollar to multi-month lows, limiting downside pressure on precious metals like silver.
The dollar's weakness and expectations of a less hawkish Federal Reserve are expected to boost investment demand for silver. Citi maintained a bullish outlook, targeting silver at $75 per ounce over the next zero to three months and $90 over six to 12 months.
US economic data showed signs of softer activity, with retail sales falling 0.6% month-on-month in July, while initial jobless claims rose by 9,000 to 209,000. Chinese imports of silver-bearing ores jumped 62.5% year-on-year in June to 219,000 tonnes.
The global deficit is projected to widen to 46.3 million ounces in 2026 from 40.3 million in 2025, despite total demand declining 2%. The Silver Institute and Metals Focus expect the market to remain in structural deficit for a sixth consecutive year.