FX.co ★ Silver Holds Decline on Hot US PPI

Silver prices remained under $38 per ounce on Friday, following a decline of over 1% in the previous session. This drop was influenced by US producer inflation figures exceeding expectations, reducing the likelihood of a substantial Federal Reserve interest rate cut in September. Weekly jobless claims were reported at 224,000, which is below the projected 228,000, indicating some resilience in the labor market. While market predictions still reflect a strong probability of a 25-basis-point rate cut next month, the chances of a larger 50 basis point cut have diminished. Additionally, comments from St. Louis Fed President Alberto Musalem on Thursday emphasized that a half-point reduction is unnecessary, contrasting with Treasury Secretary Scott Bessent’s earlier suggestion that it could be feasible. On the international diplomacy front, US President Donald Trump and Russian President Vladimir Putin are scheduled to meet in Alaska later on Friday, aiming to negotiate an end to the conflict in Ukraine.