Silver set to soar?

One of the key data points for US policy is set to be released on Wednesday 11 May at 13:30. That is the US inflation data. The headline is expected to come in at 8.1% y/y and the core reading at 6% y/y, but if we see a print below minimum expectations for both of these data points then watch for USD weakness. The Fed is hiking rates to contain surging inflation, but if the inflation data today hints that the US is passed ‘peak inflation’ then that can weaken the USD and cause yields to drop. Remember, when real yields fall and the USD falls then precious metals like silver and gold usually gain. Will a US CPI ...