Spot Silver scaled a fresh 2-month high on Wednesday amid improving prospects for industrial demand despite expectations interest rates may stay elevated for longer.
Silver is used in electronics, solar panels and other industrial applications because of its high electrical conductivity.
Yet, uncertainty in the Middle East continued to weigh on the white metal. The backdrop in the region remains unsettled following recent remarks by US President Donald Trump, who stated that Iran was “under control”, but warned that the situation could result in either a new agreement or complete “decimation.”
On the data front, US Consumer Price Index for April rose 0.6% month-over-month, which drove annual headline inflation to 3.8% – the highest rate since May 2023.
And, annual core inflation rate, which excludes food and energy, accelerated to 2.8% in April.
Traders have largely priced out Fed interest rate cuts for 2026, while the probability of a hike by December stood at 30%.
Markets now focused on the meeting between US President Donald Trump and Chinese President Xi Jinping in Beijing later this week.
Spot Silver was last up 0.43% on the day to trade at $86.90 per troy ounce.
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