Recently we noted that silver prices had fallen over recent weeks on aggressive Fed hiking expectations and strong USD bids. This has led to notable selling pressure in both gold and silver. The expectation for earlier this week was that headline inflation would fall to 8.1% from the prior of 8.5%. In the event headline inflation printed higher than expected at 8.3 and the core rose too. This all but sealed in the chances of a 75bps rate hike at the Fed’s next meeting and immediately resulted in silver downside as expected.

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Major Trade Risks: The major risk here is any data that indicates US inflation is actually falling.

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