Silver slipped more than 1% toward $76 per ounce on Monday, erasing gains from the previous session in thin trading, as market activity was muted by holidays in the US, China, and several other countries. On Friday, prices had surged nearly 3% after softer US inflation data strengthened expectations that the Federal Reserve will begin cutting interest rates later this year. Futures markets now largely anticipate a first Fed rate cut in July, with a significant probability still assigned to a move in June.
Investors are awaiting the release of the latest Fed meeting minutes and the central bank’s preferred inflation gauge, the core PCE price index, for further clarity on the US monetary policy trajectory.
Meanwhile, mainland Chinese markets are closed this week for the Lunar New Year holidays. Chinese traders had recently fueled a speculative rally in precious metals, prompting regulators to step in with measures aimed at curbing market risks. Silver prices spiked to above $120 per ounce in late January before retreating to around $64 earlier this month as bullish sentiment unwound.
