FX.co ★ Silver Hits 2-Month High

Silver rose above $87 an ounce on Wednesday, its highest level in two months, and outperformed other precious metals amid a brighter outlook for industrial demand. The metal is a key input for electronics, solar panels, and a broad range of industrial applications thanks to its superior electrical conductivity, while also retaining its role as a traditional investment asset alongside gold. Sentiment remained cautious, however, after stronger-than-expected US inflation data dampened expectations for interest rate cuts by the Federal Reserve. US consumer inflation accelerated to 3.8% in April, exceeding forecasts of 3.7% and marking its highest reading since May 2023. At the same time, oil prices extended a three-session winning streak as diplomatic efforts to defuse the US-Iran conflict failed to yield progress, keeping inflation risks elevated.