Silver Holds Highs, Market Awaits Fed Signals
Silver prices (XAG/USD) weakened slightly and held near 14-year peaks in early Asian trading on Monday, hovering around $42 per troy ounce as markets await the Fed's decision this week. Economists' consensus points to a 25-bps rate cut as the first baseline scenario in nine months, maintaining interest in the yield-free precious metal. Real-time data puts silver around $42.10 today, not far from last week's rally, while gold also held near record highs.
Expectations of Fed easing are weighing on real yields and the dollar's outlook, but positioning ahead of the FOMC has seen the greenback occasionally gain slightly—limiting silver's gains in the very short term. Markets are also pricing in the possibility of further cuts through the end of the year, so the tone of the dot plot and Jerome Powell's press conference will be crucial for the next direction. If the Fed hints at a deeper easing path, silver's bullish momentum could potentially continue; conversely, more cautious guidance could trigger short-term profit-taking.
Beyond the Fed, other catalysts being monitored include US manufacturing data, other major central bank decisions this week, and continued solid industrial demand (solar/electronics). Historically, the prospect of interest rate cuts supports non-coupon metals like silver. Technically, analysts assess initial support at $40.60 in the event of a correction, while immediate resistance lies at $42.50–$43.20. A convincing break above this range could open the door to a new high, while failure to break through risks further consolidation.
Source: Newsmaker.id
