Silver prices retreat amid inflation and interest rate concerns

Silver prices have experienced a pullback, trading around $66 after reaching intraday highs near $67. The retreat is attributed to rising oil prices, which have fueled concerns that inflation may remain elevated, potentially prompting central banks to maintain high borrowing costs. Because silver offers no yield, expectations of tighter Federal Reserve policy weigh on the metal.

Market participants are closely monitoring upcoming US Producer Price Index (PPI) and Consumer Price Index (CPI) data to gauge the likelihood of interest rate adjustments at the September meeting. While the US Dollar remains under pressure, providing some downside cushion, technical analysts note that silver is struggling to break above the 100-day simple moving average (SMA) at $67.28.

Some analysts suggest the recent rebound may not confirm a sustained upward trend. Silver remains within a descending channel, and failure to reclaim key resistance levels near $67 could lead to further corrections toward support levels between $63 and $64.50.