• Silver spikes higher following the release of mixed Producer Price Index data. 
• Although the annual figures came in lower-than-expected, the monthly data rose. 
•  US Jobless claims released at the same time showed an uptick in people claiming benefits. 

Silver (XAG/USD) price is trading higher on Thursday after the release of US “factory gate” inflation, otherwise known as the Producer Price Index (PPI). The precious metal is exchanging hands in the $29.30s after rising over 2.0% on the day and breaching the top of a mini consolidation zone. 

The Producer Price Index, which is often seen as a predictor of broader inflation, came in mixed in August, with the monthly readings beating – but the annual readings falling below expectations. There were also substantial downward revisions to July’s data. The US Dollar (USD) sold off following and precious metals like Gold and Silver, which are negatively correlated to USD rose. 

The Producer Price Index (PPI) ex Food & Energy rose by 2.4% in August, the same as the 2.4% registered in July. The result came in below expectations of 2.5%, according to data from the US Bureau of Labor Statistics (BLS).  

On the month, core PPI rose 0.3% compared to the downwardly-revised 0.2% decline in July. Economists had expected a 0.2% rise. 

Headline PPI, meanwhile, rose 1.7% in August after a downwardly-revised 2.1% rise in the previous month. The result was below expectations of 1.8%. On a monthly basis PPI rose 0.2%, which compared to the revised-down 0.0% registered in July and was above the 0.1% expected.