Silver (XAG) Daily Forecast: Eyes on US PPI Data as Silver Tests $31.50…

Despite stronger-than-expected US inflation figures, the possibility of additional rate cuts remains a significant factor supporting silver’s positive momentum.

Market Focus Shifts to US PPI Data and Its Impact on Silver Prices

Investors are now awaiting the US Producer Price Index (PPI) report, which could influence dollar demand and impact silver prices.

A higher-than-expected PPI reading might strengthen the dollar and limit silver’s gains, while a softer PPI could weaken the dollar and provide additional support for silver prices.

The recent Consumer Price Index (CPI) data showed a year-over-year increase of 2.4%, while core CPI, which excludes food and energy, rose by 3.3%.

This stronger inflation data has created uncertainty around the pace of future rate cuts, making the upcoming PPI report crucial for market sentiment.

China’s Fiscal Stimulus and Its Potential Impact on Silver Demand

Market participants are also closely watching developments in China, where new fiscal stimulus measures are expected to be announced this Saturday.