Spot Silver pulled back from a 13-year high of $36.88 as a result of a probable technical correction.
The 14-day Relative Strength Index (RSI) has indicated that Silver prices rose quite much for a too short period of time (overbought conditions, with index readings above the 70.00 threshold). This prompted investors to look for a suitable opportunity to book their profits.
Despite the current pullback, the white metal remains underpinned by robust industrial demand, persistent supply deficit and its safe-haven appeal amid continuing macroeconomic and geopolitical uncertainty.
Silver plays a crucial role in solar energy, electronics and broader electrification efforts.
Meanwhile, softer US CPI inflation added to expectations of Fed rate cuts.
US consumer prices saw a modest increase in May, tempered by lower gasoline costs, the latest data by the Labor Department’s Bureau of Labor Statistics showed.
Consumer prices rose 0.1% in May, slowing from a 0.2% gain in April. US annual inflation stood at 2.4% in May, picking up from 2.3% in April.
Markets are now pricing in 50 basis points of rate cuts by the Federal Reserve by year-end.
Market players now awaited the US producer inflation data print for more cues on macroeconomic conditions and the Federal Reserve’s future policy path.
On the tariff front, US President Donald Trump said on Wednesday that a deal had been struck to revive a truce in the US-China trade war, after US and Chinese officials established a framework on tariff rates.
Spot Silver was last down 1.13% on the day to trade at $35.84 per troy ounce.
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