It was a difficult session for silver bulls overnight, with the precious metal falling by 6%.
The sharp sell-off followed the release of the latest US Consumer Price Index (CPI) data by the Bureau of Labor Statistics. Consumer prices rose 0.6% in September and were 3.7% higher than a year earlier.
It was the largest monthly increase in five months, with gasoline accounting for more than half of the rise. Gold also fell, losing 1.2%, while most industrial metals traded lower.
Brent crude oil futures remain around US$106 ($152) a barrel. There are also credible reports that some physical barrels are trading at higher prices.
The New York Times reports that attacks on shipping in the Strait of Hormuz have escalated, increasing risks for vessels operating in the region.
Rio Tinto (ASX:RIO) said in reports released yesterday that rising global shipping costs favour Australian miners because of their shorter distances to China. Brazilian iron ore exports are one example, with marginal producers reportedly reducing supply to the market.
Source: New York Times
Write to Callum Newman at Mining.com.au
Main image: Unsplash
