Despite stronger-than-expected US inflation data, the possibility of additional rate cuts remains a key factor supporting silver’s positive momentum.
Market focus shifts to US PPI data and its impact on silver prices
Investors are now awaiting the US Producer Price Index (PPI) report, which could impact dollar demand and silver prices.
A higher-than-expected PPI could strengthen the dollar and limit silver’s gains, while a softer PPI could weaken the dollar and provide additional support for silver prices.
Recent consumer price index (CPI) data showed a year-on-year increase of 2.4%, while the core CPI, which excludes food and energy, rose 3.3%.
This stronger inflation data has created uncertainty about the pace of future rate cuts, making the upcoming PPI report crucial for market sentiment.
China’s fiscal stimulus and its potential impact on silver demand
Market participants are also closely watching developments in China, where new fiscal stimulus measures are expected to be announced next Saturday.