FX.co ★ Silver Slips on Profit-Taking

Silver saw a decrease of nearly 1%, settling at approximately $40.6 per ounce on Monday, retreating from its peak not seen in 14 years as investors secured profits before crucial U.S. inflation data is released later this week. These reports could potentially influence the Federal Reserve's forthcoming policy decisions. The producer price index is scheduled for Wednesday, followed by the consumer price index on Thursday. Last week, silver reached its highest point since 2011 as indicators of a cooling U.S. labor market heightened expectations for interest rate reductions by the Federal Reserve. Markets have almost entirely anticipated a 25 basis point cut later this month, with some analysts speculating on a larger 50 basis point decrease, depending on forthcoming inflation figures. From an industrial perspective, strong demand from sectors such as solar energy, electric vehicles, and electronics has tightened the physical market, coinciding with a period of constrained supply.