Silver Rises On Short Covering After Pressure Seen As Fed Rate Cut Bets Drop.
Silver experienced a rebound, settling up by 0.74% at 70152, driven by short covering. This recovery followed a drop in prices as traders revised their expectations for a Federal Reserve interest rate cut in light of unexpectedly high U.S. inflation figures.
The U.S. consumer price index (CPI) for January showed a 3.1% year-on-year increase, surpassing the anticipated 2.9%. Despite this, money markets are currently pricing in no Fed cut in March, with a 53% chance of a cut in June. In contrast, UK inflation did not accelerate as expected in January, potentially relieving pressure on the Bank of England (BoE) to maintain current interest rates for an extended period.
