Silver fell toward $84 per ounce on Thursday, extending its losses from the previous session as renewed inflation concerns dampened expectations for interest rate cuts. Oil prices resumed their rally after coordinated releases from strategic reserves failed to calm markets, keeping energy-driven inflation risks elevated. These factors have outweighed stronger safe-haven demand stemming from the conflict involving Iran.
In the US, February inflation data came in as expected, with the CPI remaining steady but still above the Federal Reserve’s 2% target. At the same time, forward-looking inflation indicators have further reduced the probability of a near-term Fed rate cut. This has boosted the US dollar and driven Treasury yields higher, increasing the pressure on non-yielding assets such as silver.
The Fed is widely anticipated to hold interest rates steady at its meeting next week, with markets now pricing in only one rate cut for the year. Despite the recent pullback, silver is still up more than 18% year-to-date.
