Gold, silver prices edge lower

Gold and silver bars

Gold and silver futures prices edged lower in Thursday’s trading after a strong rally driven by easing US inflation.

The dollar index, which measures the US currency against a basket of six major currencies, was broadly stable at 99.97 points.

Pressure on the US Federal Reserve to tighten monetary policy eased after data showed US annual inflation slowed for the second consecutive month. This pushed the probability of a September rate hike down to 40%, from 54% a week earlier, according to the CME FedWatch Tool.

On the geopolitical front, a political deadlock continued between Washington and Tehran over efforts to halt the war. An Iranian official said there had been no tangible progress toward reviving the interim agreement reached in June, Reuters reported.

Markets are now awaiting US producer price data due later today for further clues on the Fed’s monetary policy path. Monthly inflation is expected to rise 0.2%.