Silver Hovers at 14-Year Peak
Silver traded around $40.7 per ounce on Tuesday after gaining more than 2% in the prior session, steadying near its highest level since 2011 as traders increased bets on US Federal Reserve rate cuts.
Markets are pricing in nearly a 90% chance of a 25 basis point reduction later this month. San Francisco Fed President Mary Daly said Friday the central bank is prepared to ease policy given risks to the labor market, while suggesting tariff-driven inflation could prove temporary.
Safe-haven demand also lent support to precious metals amid concerns over Fed independence and renewed uncertainty surrounding President Donald Trump’s tariffs. On the industrial side, demand was bolstered by China’s solar boom, with solar cell exports surging over 70% in the first half of the year, led by strong shipments to India.
Source: Trading Economics