FX.co ★ Silver Rallies on Fed Rate Cut Bets

Silver prices rose by 1% to approximately $38.30 per ounce on Wednesday, marking the second straight day of gains. This increase comes in the wake of the latest US inflation data, which has bolstered expectations for an interest rate cut by the Federal Reserve next month. Headline inflation remained steady at 2.7%, contrary to predictions of a rise to 2.8% driven by tariffs. Meanwhile, core inflation climbed to 3.1%, reaching its highest point in six months. Currently, markets have factored in a 94% likelihood of a 25-basis-point rate cut in September, with the potential for an additional reduction by the year’s end also anticipated. In the geopolitical sphere, investors are focused on the upcoming US-Russia discussions in Alaska concerning the ongoing conflict in Ukraine. The White House has characterized the scheduled meeting between Presidents Donald Trump and Vladimir Putin as a "listening exercise for the president," tempering expectations for a significant breakthrough in achieving a ceasefire agreement.