Silver held around $27.8 per ounce in subdued trade as investors braced for a key US consumer inflation reading that could cement expectations for a super-sized interest rate cut from the Federal Reserve in September.

Data earlier this week showed that US producer prices rose less than expected in July, supporting a dovish outlook on Fed monetary policy. Markets now see a higher chance for a larger 50 basis point Fed rate cut in September, with over 100 bps of total easing expected this year.

Elsewhere, Australian miner Perth Mint reported that its silver product sales surged 91% month-on-month to 939,473 ounces in July, the highest level since February. US-bound shipments accounted for most of its silver sales which remains the firm's biggest market.

Source: Trading Economiccs