Silver Analysis – February-13-2024
Silver prices remained around $22.5 per ounce as trading was quiet during the Lunar New Year holidays. Investors were getting ready for a busy week ahead with important updates, including U.S. inflation rates for consumers and producers and retail sales figures. Also, at least seven Federal Reserve officials are expected to share their insights. On the previous Friday, the updated December figures indicated a smaller rise in the Consumer Price Index (CPI) than first thought.
The market is now looking forward to a slowdown in overall and core inflation rates for January. If inflation continues to drop toward the target, policymakers might begin reducing interest rates, making it less costly to invest in assets that don’t generate income. As predicted by the CME FedWatch Tool, there’s about a 50% chance that we’ll see an interest rate decrease by May.