FX.co ★ Silver Holds Steady Ahead of US CPI

Silver prices remained steady at around $41 per ounce on Thursday, hovering near their highest levels in 14 years. This occurred as investors anticipated the upcoming US consumer inflation report, which could influence the magnitude of the Federal Reserve's expected rate cut next week. On Wednesday, reports revealed that producer prices dropped by 0.1% in August, following a downward revision of July's 0.7% gain, and falling short of the anticipated 0.3% increase. The market has fully accounted for a 25 basis point rate cut, with a minor 8% chance of a more substantial half-point reduction. Demand from investors seeking safe havens further buoyed silver prices after President Donald Trump called on the EU to implement tariffs of up to 100% on China and India to exert pressure on Russia. Additionally, on the industrial front, ongoing robust demand from sectors such as solar energy, electric vehicles, and electronics has maintained a tight physical silver market amidst persistent supply limitations.