Silver Rally Stalls After PPI
Silver prices continued their decline below $38 per troy ounce in Friday's Asian session, dragged down by a strengthening US dollar and rising Treasury yields following the release of hotter-than-expected US producer inflation figures. The movement remained cautious, with market participants reconsidering the prospect of a Fed interest rate cut next month.
Data showed the US Producer Price Index (PPI) for July rose 0.9% month-on-month and 3.3% year-on-year, well above the consensus of 0.2%. Initial jobless claims also fell to 224,000, indicating a resilient labor market. This combination pushed the US Dollar Index back above the psychological 98 level and dampened interest in non-yielding assets like silver. The market is now leaning towards a 25 bps cut in September, rather than a 50 bps cut.
Looking ahead, the market's focus will be on Fed officials' speeches, US July Retail Sales data, and the University of Michigan's consumer sentiment report.
Source: Newsmaker.id
