Silver Prices Face Volatility Amidst Key US Economic Data
Following a weekly increase of over 3.5%, silver's price concluded at $38.34 per ounce, approaching its previous high of over $49. The upcoming week is poised for significant volatility in silver's value due to the release of key economic indicators, particularly from the United States. Data on July's Consumer Price Index (CPI), Producer Price Index (PPI), and retail sales will inform the Federal Reserve's decision on interest rates next month. Should this data surpass previous figures, it could diminish the likelihood of a September rate cut, as persistent inflation and steady retail spending might keep rates stable, thereby bolstering the US dollar.
While stronger economic data from the UK and Japan could pressure the dollar, its impact on silver prices is anticipated to be less direct compared to US data. The recent rise in silver is facing potential profit-taking by hedge funds. A correction may be triggered if US inflation data exceeds expectations, reinforcing the probability of the Fed maintaining current interest rates and strengthening the dollar.
Conversely, a weakening US dollar, combined with rising tariff and geopolitical tensions, could propel silver prices past the $40 per ounce resistance level. This could initiate a "Silver squeeze," leading to a sharp, short-term increase in its value.








