Silver prices plunged over 2.3% to approximately $65.80 per ounce during Thursday’s European trading session as the US Dollar regained strength ahead of critical US economic data. The XAG/USD pair faces mounting pressure as traders position themselves before the August Producer Price Index release scheduled for 12:30 GMT today.
The white metal’s decline reflects renewed dollar demand as market participants reassess inflation expectations and Federal Reserve policy trajectories. The upcoming PPI data carries significant weight for precious metals pricing, as higher-than-expected producer inflation could strengthen the dollar further and pressure non-yielding assets like silver. Conversely, softer inflation readings may provide relief for precious metals bulls.
Traders across commodity desks and forex platforms are closely monitoring the $65 support level, which could determine near-term directional moves for silver positions. The metal’s sensitivity to dollar movements remains heightened amid ongoing uncertainty about Fed rate policy.
FXnCO Insight
Silver traders should watch the 12:30 GMT PPI release closely and prepare for heightened volatility, with stop-losses recommended below $65 if holding long positions.
Source: FXStreet