Silver Holds at $38.9; Fed & PCE Focus
Silver prices (XAG/USD) held steady in the Asian session on Monday (August 25th) at around $38.9/oz, maintaining last week's gains despite a slackening intraday pace. The subdued price movement reflects a pause after the rally, with the market reassessing the direction of the US dollar and yields ahead of a series of US data later this week.
On a macro level, expectations for a Fed rate cut in September remain high—around 75–85%—following Jerome Powell's dovish signal at Jackson Hole. However, the US dollar attempted a slight rebound this morning, which could curb silver's rapid rise in the very short term. The combination of substantial "cut odds" and a dollar that has not yet fully recovered remains a tailwind for the precious metal.
On the medium-term fundamental front, the Silver Institute estimates the silver market will return to deficit in 2025 (the fifth consecutive year), supported by industrial demand—particularly photovoltaic/solar—which remains strong despite increased usage efficiencies. The ongoing deficit maintains the bullish structure despite daily volatility. (ayu)
Source: Newsmaker.id
