Silver extends gains to new record highs following soft US core inflation

The recent US Core CPI data surprised to the downside, pushing silver prices to new all-time highs and bolstering rate cut expectations. The previous month's report was approached cautiously due to a government shutdown, but today’s figures confirmed the previous month’s easing. Silver continues to benefit from strong support factors such as geopolitical tensions and attacks on the Federal Reserve's independence. In fact, silver broke through into new highs following news about the DOJ subpoenaing the Fed, seen as a strategy to enable Trump to dismiss Fed Chair Powell 'for cause' should he face indictment. The breakout indicates potential for further price increases, and the market remains favorable for buying on dips. However, there is a potential risk tomorrow with a US Supreme Court decision on Trump's tariffs which could negatively impact silver if struck down. Such a ruling could alleviate stagflation risks and raise global growth expectations, possibly leading to negative sentiment for silver and gold in the short term. Given the lack of bearish catalysts at this time, buying silver remains advisable, but traders should stay vigilant about upcoming events.