Silver Rises to $38.00 as US Dollar Weakens Ahead of PPI Data
Silver prices (XAG/USD) have risen again toward the $38.00 level after being under pressure for the past two days. This strengthening was driven by a weakening US dollar, which lost momentum after the market pored over US consumer inflation (CPI) data. Investors' focus now shifts to the producer price index (PPI) report due later today, which is expected to provide further signals regarding the direction of the Fed's interest rate policy.
Previously, the CPI data showed the initial impact of Trump's tariffs, reinforcing expectations that interest rates will remain high for the long term, as seen by Fed Chairman Jerome Powell. This initially drove bond yields up and strengthened the US dollar, but now silver is starting to emerge as an alternative safe haven asset amidst uncertainty about the global monetary and trade outlook.
Source: (ayu-newsmaker)