FX.co ★ Silver Declines Ahead of Key US Inflation Data

Silver prices dipped below $36.50 per ounce on Wednesday, marking a second consecutive session of losses as investors braced for the latest US Consumer Price Index (CPI) report. A reading surpassing expectations could pressure precious metals by restricting the Federal Reserve's ability to implement interest rate cuts. Investors also reviewed the results of the US–China trade discussions in London, where officials established a framework to execute the Geneva consensus and reiterated commitments from the recent Trump-Xi dialogue. Despite the recent downturns, silver continues to benefit from strong industrial demand, especially from the solar energy sector. Earlier this week, the metal reached its highest level in over 13 years, spurred in part by an ongoing supply-demand disparity. The Silver Institute reported a 15% shortfall in global silver supply relative to demand in 2024, with another deficit predicted for this year, offering a potential long-term boost to prices.