Silver Retraces from 3-Week High, Focus Shifts to the Fed & Rates
Silver prices weakened below $87 per ounce on Thursday (February 26th), retreating from a three-week high of around $91.3 reached the previous day. The decline occurred as geopolitical premiums eased and the prospect of tight interest rates again limited buying interest, although global trade uncertainty still loomed.
Short-term safe-haven sentiment also waned after US-Iran nuclear talks in Geneva signaled potential progress, reducing the market's need for a safe haven in precious metals as strong as in the previous session. This prompted some market participants to shift to profit-taking mode after silver had recorded a weekly gain of around 3%.
From a macro perspective, the strengthening US dollar also added pressure. The market believes that PCE-based inflation remains high enough to make the Fed comfortable holding interest rates for longer, limiting the room for a rally in precious metals, which are sensitive to real yields. Note: The January PCE release is officially scheduled for March 13th, so the "3%" figure is more accurately understood as a market expectation/assessment, not a final figure.
Meanwhile, the market is still awaiting further clarity regarding Washington's plan to raise global tariffs from 10% to 15% through Section 122, following a February 20th Supreme Court ruling partially overturning previous emergency duties. This uncertainty about policy direction has led market participants to reduce risky positions and await a more definitive signal.
With the combination of easing geopolitical factors, a relatively resilient dollar, and an expected tight interest rate stance, silver's movement is currently dominated by technical corrections and profit lock-in, while awaiting certainty on tariff headlines and the next monetary policy direction.
Source: Newsmaker.id
