Silver Weakens Ahead of US Inflation Data
Silver prices (XAG/USD) weakened on Friday, October 24, 2025. In morning trading WIB (Western Indonesian Time), silver was trading around $48.66/oz, marking continued weakness and remaining on track for a sharp weekly decline after last week's strong rally. This weakness was driven by profit-taking and concerns about overvaluation.
Previously, silver's rally was supported by safe-haven demand and long-term optimism over industrial uses—from EVs, data centers, to solar—as well as tight supply that triggered a "squeeze" in London. However, these supply tensions have begun to ease, further pressuring silver prices this week.
On the geopolitical front, market participants are closely monitoring the planned Trump-Xi meeting on Thursday (October 30) on the sidelines of the APEC summit in South Korea—improving trade sentiment could reduce the hedging drive in precious metals.
In the US, the market is awaiting the release of inflation data today and assessing its implications for the likelihood of a Fed interest rate cut at its meeting on October 28-29. Remaining high inflation could restrain precious metals' gains in the short term, while the prospect of interest rate cuts remains a support in the coming months.
Going forward, silver's direction will be sensitive to US dollar movements leading up to and following inflation releases and US-China trade developments. A stable/stronger dollar typically puts pressure on precious metals, while a weaker dollar has the potential to open up room for a rebound. (asd)
Source: Newsmaker.id
