Silver prices fall as US inflation data awaited

Silver prices fell around $27.5 an ounce, retreating from a one-week high, as investors cautiously await crucial US inflation figures this week that will provide insights into the path of the Federal Reserve’s monetary policy.

Over the weekend, Fed Governor Michelle Bowman said that despite weaker inflation figures for May and June, inflation remains uncomfortably above the Federal Open Market Committee’s 2% target.

Since then, markets have backed away from bets on a Fed rate cut, seeing a greater chance of a 25 basis point cut in September than a larger 50 basis point cut, CNN reported.

Still, analysts are expecting more than 100 basis points of total Fed cuts this year.

Elsewhere, Australian miner Perth Mint reported that its silver product sales surged 91% month-on-month to 939,473 ounces in July, the highest since February.

Shipments to the United States accounted for most of its silver sales, which remains the company’s largest market.