Silver jumps 1.7%, as in-line inflation data eases rate hike fears

Silver prices rose on Friday following the release of U.S. inflation data. The core Personal Consumption Expenditures (PCE) price index rose 0.3% month-over-month in May. This figure increased 3.4% from a year ago, meeting market expectations.

The reading confirmed that inflation remains above the Federal Reserve's 2% target. The in-line data provided relief that price pressures were not accelerating. The U.S. dollar and Treasury yields pulled back slightly following the report.

Spot silver rose 1.7% following the data. The metal reached $58.38 an ounce. Traders trimmed bets on aggressive future interest rate hikes. Markets expect rates to remain high, though the risk of a hawkish policy shift has decreased.