Silver prices (XAG/USD) declined below the $66 mark on Thursday as the US Dollar gained strength ahead of the release of the United States Producer Price Index (PPI) data. According to FX Street, silver slid 2.3% to approximately $65.80 during the European trading session.
The US Producer Price Index for August is scheduled for release at 12:30 GMT, an event closely watched by investors for clues on inflation and economic momentum. The strengthening dollar ahead of this data has put downward pressure on silver, traditionally seen as a hedge against inflation.
For Japanese investors, the movement in silver prices and the US Dollar's performance are important indicators, especially given Japan’s sensitivity to global commodity prices and currency fluctuations impacting export-driven equities.