Powell Effect: Silver Slowly Rebounds
Silver prices moved in the high $41-$42 per ounce range on Friday, after fluctuating following the Fed's decision. Real-time quotes showed XAG/USD last hovering around $41.7-$41.9, marking a slight recovery from early-week weakness but remaining sensitive to positive US dollar movements.
On the policy front, the Fed restarted its tapering cycle with a 25 basis point cut, but Chairman Jerome Powell emphasized a "meeting-by-meeting" approach, calling the move a risk-management-based cut due to a weakening labor market. The less dovish tone than expected makes the rally in precious metals—including silver—more selective and dependent on the short-term direction of the DXY and real yields.
Medium-term fundamentals remain constructive. The Silver Institute forecasts a continued silver market deficit in 2025 as industrial demand (including photovoltaic/solar) remains near record levels, while supply is slowing. This imbalance provides a cushion for prices when risk sentiment falters, although volatility remains high around multi-year highs.
Source: Newsmaker.id
