Silver Hits Record High, Supported by Fed Easing Hopes
Silver prices continued their upward trend and rose for the fourth consecutive day, driven by growing expectations of Federal Reserve (Fed) monetary policy easing and the strong appeal of safe-haven assets. On Wednesday, silver (XAG/USD) traded around $72.05, up around 0.70%, after hitting a new record high of $72.71 earlier in the session.
This bullish momentum reflects continued investor interest in precious metals, particularly silver, amid changing global monetary policy expectations. The precious metal continues to benefit from speculation that US interest rates will move lower in the next few years, creating a conducive environment for non-yielding assets.
Market expectations for more accommodative monetary policy were the main driver of silver's rise. According to the CME FedWatch Tool, market participants estimate a more than 70% probability of a cumulative interest rate cut of at least 50 basis points in 2026. This projection differs slightly from the Fed's official view, where the latest dot plot still shows the federal funds rate hovering around 3.4% at the end of 2026, indicating limited room for easing.
Under these conditions, the prospect of lower interest rates remains favorable for silver. Falling bond yields reduce the opportunity cost of holding the precious metal, thereby increasing its appeal to institutional investors and speculative flows seeking a hedge and potential returns.
Beyond interest rate factors, silver also draws support from broader safe-haven sentiment. Geopolitical uncertainty, financial market volatility, and the structural weakness of the US dollar continue to support demand for the precious metal. Although gold tends to consolidate below its record high, silver benefits from the catch-up effect and strong speculative interest, keeping its price in an uptrend. (alg)
Source: Newsmaker.id
