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Silver prices (XAG/USD) experienced a significant rally on Friday, climbing more than 2.50% to reach $77.20 per ounce. This sharp upward movement was primarily triggered by the latest US Consumer Price Index (CPI) report, which showed inflation cooling faster than analysts had anticipated. The softer inflation data has led market participants to recalibrate their expectations regarding the Federal Reserve's interest rate path, potentially reducing the need for further aggressive hikes. Consequently, the US Dollar faced downward pressure, enhancing the appeal of non-yielding precious metals like silver for international investors. Despite this impressive daily performance, the metal is still on track to conclude the week with an overall loss. Traders are now closely watching the $80.00 psychological level as a key resistance point for future price action.
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