Spot Silver steady as US inflation pressure eases

Spot Silver was little changed not far from a three-day high of $22.785, after the latest US data implied price pressures were easing, while expectations of a Fed interest rate cut in June remained largely unaffected.

The US core PCE Price Index, the Federal Reserve’s preferred measure of inflation, rose 2.8% YoY in January, in line with market expectations and slowing from a 2.9% rise in December.

January’s rate has been the slowest since March 2021.

The annual PCE inflation rate eased to 2.4% in January, or the lowest level since February 2021, from 2.6% in December.

Markets are now pricing in a 62% probability of a rate cut at the Fed’s June policy meeting.

Market players will also be paying attention to remarks by at least six Federal Reserve officials later on Friday.

Futures data suggested traders were pricing in three 25 basis point rate cuts by the Fed this year.

Lower interest rates tend to decrease the opportunity cost of holding Silver, which pays no interest.

As of 7:50 GMT on Friday Spot Silver was inching down 0.05% to trade at $22.649 per troy ounce.

Silver Futures for delivery in May were edging down 0.18% to trade at $22.843 per troy ounce.

The US Dollar Index, which reflects the relative strength of the greenback against a basket of six other major currencies, was inching down 0.01% to 104.140 on Friday.