Spot Silver was mostly steady near a 14-year peak of $42.46/oz. on Monday ahead of a widely expected interest rate cut by the Federal Reserve.
Annual headline consumer inflation in the US picked up to 2.9% in August from 2.7% in July, the latest data showed. Yet, market players expect it will probably not deter the US central bank from easing policy.
Markets are now pricing in about a 96% chance of a 25 basis point Fed rate cut this week and a 4% chance of a super-sized 50 basis point cut.
Central banks in Canada and China are also expected to lower interest rates this week.
Lower interest rates tend to reduce the opportunity cost of holding Silver, which pays no interest.
Additionally, robust industrial demand continued to support Silver prices amid supply constraints. Silver is facing its fifth successive year of a structural market deficit, according to the Silver Institute industry association.
Spot Silver was last down 0.02% on the day to trade at $42.17 per troy ounce.
Meanwhile, Silver futures for December delivery were last down 0.57% to trade at $42.588 per troy ounce.
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