"Silver rose on Tuesday, trading near all-time highs as markets priced in a nearly 90% probability of a Federal Reserve rate cut this week. Investors remain focused on whether Chair Powell will deliver a "hawkish cut" by signalling caution about further easing in 2026. The updated FOMC Economic Projections will also be closely watched for guidance on the policy path. Expectations for additional cuts next year point to two rate cuts."
"Any dovish shift in tone could further support non-yielding assets such as silver. However, a more cautious stance and forecasts from the Federal Reserve could weigh on the metal. Silver's rally has also been fuelled by tightening physical conditions. Global silver ETFs continued to see inflows, bringing holdings to their highest in multiple years, while exchange inventories remain low, adding to the bullish narrative. Additionally, strong industrial demand continues to underpin the medium-term bullish thesis for silver."
Silver traded near all-time highs as markets priced a nearly 90% probability of an imminent Federal Reserve rate cut. Investors focus on whether Chair Powell will deliver a "hawkish cut" by signalling caution about further easing in 2026, while updated FOMC Economic Projections will guide the policy path. Markets expect two additional cuts next year. A dovish shift could boost non-yielding assets like silver, while a cautious Fed stance and conservative forecasts could pressure prices. Tight physical conditions, rising global silver ETF holdings to multiyear highs, low exchange inventories, and strong industrial demand support a medium-term bullish outlook.
Read at London Business News | Londonlovesbusiness.com
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