Having hit an all-time high of $54.49/oz. on Friday amid tightness in the spot market and on expectations of more Federal Reserve interest rate cuts, Silver fell on Tuesday, as investors likely took profits after recent rally.
Last week, Silver prices rose amid a historic squeeze in London, where a lack of liquidity has led to a global hunt for the commodity. Silver is facing its fifth successive year of a structural market deficit.
Investor focus now sets on the key US CPI inflation report this week.
Annual headline consumer inflation in the US probably picked up to 3.1% in September from 2.9% in August, according to market consensus.
And, annual core CPI inflation probably steadied at 3.1% in September.
Markets are now pricing in about a 99% chance of a 25 basis point Fed rate cut in October and a 97% chance of another 25 bps cut in December.
Lower interest rates tend to reduce the opportunity cost of holding Silver, which pays no interest.
Spot Silver was last down 5.27% on the day to trade at $49.68 per troy ounce.
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