Silver Regains Pressure, Safe Haven Becomes a Magnet
Silver prices jumped and approached the 113.50 area during Wednesday's Asian session. The daily increase was around 1.3%, indicating that buying interest has not yet dissipated. The main driver came from the prevailing "safety" sentiment.
The market is more sensitive to economic and geopolitical risks. At the same time, expectations of US interest rates are adding fuel to the fire. This combination usually increases the interest in precious metals, including silver.
The US dollar is also wavering. After Trump said "the dollar is fine," the dollar index weakened further and touched its lowest level since early 2022. The weakening dollar makes USD-denominated commodities, such as silver, feel cheaper for global buyers.
The next big focus is the Fed's interest rate decision. The market widely expects rates to be on hold, after three cuts by the end of 2025. But more important is the tone of the press conference: investors will be looking for clues about the direction of the economy and the future path of interest rates.
The issue of the Fed's independence also contributed to the market's defensive stance. Trump is said to be close to announcing his next Fed chair when Powell's term ends in May, and market forecasters have Rick Rieder as a leading candidate. This kind of uncertainty often increases demand for safe havens.
However, analysts warn that the risk of a correction remains. After a sharp rally over the past year, profit-taking could emerge at any time. Silver remains strong, but its volatility is also poised to kick in if sentiment changes rapidly.(asd)
Source: Newsmaker.id
