FX.co ★ Silver Holds Near Recent Highs

Silver traded around $65 an ounce, hovering near its highest level since June 22, as softer US inflation data reinforced expectations that the Federal Reserve will keep interest rates unchanged next month. US producer-price inflation slowed more than anticipated in July, driven in part by lower energy and food costs, adding to evidence that overall price pressures are not reaccelerating.

At the same time, renewed tensions in the Middle East remain a key risk. Any disruption in the region could drive energy prices higher and reignite inflationary pressures. Oil is on track for a weekly gain as traders closely watch diplomatic efforts by the US and Iran to resolve the conflict and reopen the Strait of Hormuz.

Beyond monetary policy and geopolitical concerns, silver continued to draw support from strong industrial demand, especially from expanding solar-panel production and increased investment in electricity-grid infrastructure. Underscoring this trend, Chinese imports of silver-bearing ores surged 62.5% year-on-year in June to 219,000 tonnes.