Silver Rises, Fed Uncertainty Fuels
Silver maintained its gains on Wednesday (February 18th) after the market digested the January FOMC minutes and maintained its rate cut scenario for the second half of the year. In the latest update, spot silver (XAG/USD) was around $76.81/oz, up around 4.5%.
The Fed minutes showed a mixed tone: some believe a rate cut could be appropriate if disinflation persists, while others are leaning toward holding off for longer—even leaving the option of tightening if inflation stubbornly remains above target. This combination of signals leads the market to believe the policy path remains data-dependent, not unidirectional.
This situation is generally encouraging for non-yielding assets like silver, as the market still sees the opportunity for borrowing costs to fall when inflation truly cools. However, silver's upside could remain limited if Treasury yields rise again or risk sentiment strengthens, weakening safe-haven demand. The bottom line: Silver is supported by "rate cut hopes," but remains sensitive to two key drivers—the direction of dollar yields and the inflation tone of upcoming data.
Source: Newsmaker.id
