Fed Cut Expectations Keep Silver Bullish
Silver prices strengthened slightly in Wednesday's Asian trading session, with the spot price of XAG/USD hovering around $37.85–$38.01 per ounce. Today's movement has been relatively flat following last week's rally, with a narrow intraday range signaling market caution ahead of a series of US data. This level also marks silver's proximity to a new peak this year, maintaining its medium-term bullish bias.
Sentiment is supported by expectations of a Fed rate cut in September, following the release of US inflation figures that strengthen the case for policy easing and weaken the dollar. A weaker dollar generally benefits non-interest-bearing precious metals like silver because it makes them cheaper for holders of other currencies. The market's next focus will be on US activity and employment data to confirm the direction of central bank policy and the outlook for industrial demand for silver.
Fundamentally, the combination of the Fed's easing outlook and industrial demand—particularly electronics and photovoltaics—remains the underpinning of the medium-term trend, while the main risk comes from a surge in US yields or a hawkish surprise in central bank communications.
Source: Newsmaker.id
