Silver Rises on Soft US Inflation Data, But Downside Risks Remain

Silver (XAG/USD) traded higher on Tuesday following the release of softer-than-expected US inflation figures. The data tempered expectations of a near-term interest rate hike by the Federal Reserve, which in turn weighed on the US Dollar and supported the white metal.

At the time of writing, XAG/USD was around $58.50, up nearly 2% on the day. Despite the positive move, analysts note that a downside bias remains, as broader technical and fundamental factors continue to pressure the precious metal.

The softer inflation print may reduce the urgency for the Fed to tighten policy further, but market participants remain cautious about silver's near-term outlook.