Silver slips nearly 2% ahead of key US inflation data

Silver futures slipped below $68 an ounce in mid-Asia trading today, falling nearly 2% as a firmer US dollar and rising inflation-adjusted Treasury yields increased the opportunity cost of holding the non-yielding metal. Expectations of a Fed rate hike at the September 15?16 meeting, currently priced at around 60%, added to the pressure following strong US jobs data. Higher oil prices near $100 per barrel have further intensified inflation concerns and reinforced a hawkish policy outlook. Geopolitical tensions from the US-Iran conflict offered some safe-haven support, but this was outweighed by broader macro pressures. Investors now await US PPI and CPI data for further clues on the Fed?s policy path. MCX December silver futures were down more than 1% at Rs 241752 per kg.

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