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Home Silver Price Silver Prices Plunge as US Dollar Strengthens Following Retail Sales Report (July 16)

Silver Prices Plunge as US Dollar Strengthens Following Retail Sales Report (July 16)

by anna

Silver prices (XAG/USD) reversed most of their gains, falling to approximately $30.50 during Tuesday’s American trading session. This decline in the white metal’s value coincided with a resurgence in the US Dollar (USD) following the release of the United States (US) Retail Sales report for June, which surpassed market expectations.

While monthly Retail Sales figures remained flat as anticipated, May’s reading saw an upward revision from 0.1% to 0.3%. Additionally, the Retail Sales Control Group, a critical measure of consumer spending that excludes auto dealers, building-materials retailers, gas stations, office supply stores, mobile home dealers, and tobacco stores, grew by 0.9%, significantly higher than the previous release of 0.4%.

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The slightly improved Retail Sales data enhanced the US Dollar’s attractiveness. Despite this, the rate at which core Retail Sales have increased is insufficient to halt the ongoing disinflation process.

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The US Dollar Index (DXY), which measures the Greenback against six major currencies, surged to nearly 104.50. This strengthening of the US Dollar makes silver a more costly investment for traders.

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On a broader scale, silver prices remain stable amidst strong speculation that the Federal Reserve (Fed) will begin cutting interest rates starting in September. Expectations for Fed rate cuts intensified sharply after the Consumer Price Index (CPI) report for June indicated that inflationary pressures eased more rapidly than anticipated.

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