Silver rose toward $31 per ounce on Wednesday
Silver rose toward $31 per ounce on Wednesday, likely driven by a technical rebound after falling to a one-month low earlier in the week. Investors also repositioned ahead of a key US inflation report, which could influence expectations for Federal Reserve interest rate cuts. Softer-than-expected inflation data could bolster bets on steady rate reductions, potentially boosting demand for precious metals.
However, silver prices remain under pressure from a strengthening dollar, driven by expectations of fiscal expansion and inflationary policies under the incoming Trump administration. These policies could limit the Fed's ability to lower borrowing costs, further weighing on silver.
Additionally, weak economic data from China, coupled with a lack of direct economic stimulus, has raised concerns over demand. Silver also faces pressure due to its high usage in electrification, particularly in solar panels, with potential tariff increases under Trump adding to the uncertainty.(Cay)
Source: Trading Economi
