Silver (XAG/USD) trades around $57.20 at the time of writing on Monday, down 0.73% on the day, after a strong US manufacturing report reinforced expectations that the Federal Reserve (Fed) will maintain a restrictive monetary policy. The Institute for Supply Management (ISM) reported that its Manufacturing Purchasing Managers Index (PMI) rose to 55.6 in July from 53.3 in June, beating market expectations of 54. The release showed that US manufacturing activity accelerated at its fastest pace in more than four years. According to Susan Spence, Chair of the ISM Manufacturing Business Survey Committee, four of the five PMI sub-indices accelerated compared with June, confirming the strengthening momentum in the manufacturing sector. The stronger economic data provide the Federal Reserve (Fed) with greater flexibility to tighten monetary policy further in its fight against inflation.