Silver dropped to around $29.5 per ounce in late August, retreating from six-week highs as the dollar rebounded ahead of key US inflation data that could influence the outlook for Federal Reserve interest rate cuts.
The Fed is widely expected to start easing policy in September, but markets remain divided on whether the central bank will lower borrowing costs by 25 or 50 basis points. Fed officials issued dovish statements this week and warned about rising risks to the labor market, while signaling confidence that inflation will return to target.
Elsewhere, Australian miner BHP Group warned of cooling Chinese demand for metals this year, highlighting the country's uneven economic recovery.
Source: Trading Economics
