Silver prices fluctuate following US inflation data

Silver prices experienced significant volatility following higher-than-expected US inflation data. The Consumer Price Index rose 3.7% year-on-year in September, exceeding economist forecasts of 3.6%. This triggered immediate selling as investors anticipated sustained restrictive monetary policy from the Federal Reserve.

Initially, the price dropped below $58 per ounce, pressured by a strengthening US dollar and rising bond yields. However, a recovery occurred later in the week as the dollar and yields softened, allowing COMEX front-month silver to close up 3.2% at $57.60 per ounce. Despite this rebound, the price remains approximately 53% below its 52-week high of $121.78.

In related market activity, COMEX silver inventories rose by 1.2 million ounces to a total of 333.2 million ounces. Additionally, mining company Guanajuato Silver reported a third-quarter silver production of 392,138 ounces, with a total silver equivalent production of 683,675 ounces.