Fed Impact & Weakening Dollar, Silver Breaks 14-Year High
Silver prices continued to strengthen at the start of the week and into September, breaking through their highest level in over a decade. The market recorded spot silver prices around $40.44 per troy ounce, driven by expectations of an interest rate cut by the Fed and a weakening US dollar.
Market sentiment remains bullish despite overbought technical signals, as traders consider safe-haven demand amid rising global uncertainty. The precious metal is consolidating due to sluggish trading conditions due to the US Labor Day holiday.
Overall, silver is once again in the spotlight in the commodity world. A combination of monetary sentiment (expectations of Fed easing), a weakening dollar, and strong demand from the industrial sector and investors as a hedge are the main drivers of this positive trend. Market players are advised to continue monitoring the dynamics of global policy, interest rates, and geopolitical developments that could trigger further fluctuations.
Source: Newsmaker.id