Silver Strengthens, Market Monitors Fed Signals
Silver prices rose slightly on Wednesday, recovering after dropping to a two-week low in the previous session. The strengthening occurred due to a weakening US dollar and cautious sentiment ahead of central bank catalysts, giving the white metal renewed support after a sharp correction earlier in the week. Spot and futures data indicate a tight trading range remaining in the $37–$38 area.
On the policy front, the July FOMC minutes confirmed that nearly all officials favored holding interest rates, with only two dissenters advocating for a cut. The market viewed these findings as consistent with a gradual easing scenario starting in September, so the projection of a more benign USD and yields remains supportive of the precious metal. Market expectations for a September cut remain high, and attention now turns to Jerome Powell's speech at Jackson Hole for confirmation of the next direction.
Technically, silver remains range-bound: the $37.1–$37.2 area acts as immediate support after testing the two-week low, while upside is limited by the $38 zone, which is adjacent to the active monthly contract price. A decisive break above $38 opens the door to a test of the recent peak, while a break below $37.1 risks triggering a further correction. The very short-term direction will likely remain determined by the USD/yield's reaction to the Fed's narrative and macro headlines.
Source: Newsmaker.id
