Silver Rally Unstoppable, Focus Shifts to Powell Speech and PCE Data
Silver prices rallied significantly in US trading on Tuesday (September 23rd), approaching a 14-year high above $44 per troy ounce. This increase was driven by growing expectations that the Federal Reserve will cut interest rates further at its upcoming October and December meetings.
Several Fed officials urged caution against further rate cuts, citing signs of inflation stabilization, while new Governor Stephen Miran warned that the central bank was misjudging policy tightness and risking a labor market collapse without deeper easing. The market now awaits Fed Chair Jerome Powell's remarks and Friday's PCE price index, the Fed's preferred inflation measure, for clearer direction.
Fundamentally, demand for silver continues to rise, both from institutional investors and the industrial sector. Silver-based ETFs recorded positive inflows, indicating strong speculative interest and a hedge against global economic turmoil. Furthermore, the renewable energy and electric automotive sectors remain drivers of industrial demand for silver, particularly for solar panels and batteries. Tight global supply conditions further strengthen the bullish outlook, with reports that mining production has not been able to keep up with surging industrial demand.
Technically, silver is currently holding above the key $44 per troy ounce level, which previously served as long-term resistance. If buying momentum continues, prices could potentially test the $46–$47 area in the near term. However, a technical correction remains open given the already substantial institutional buying position, potentially pushing the price down to the $42–$41 support area. Against a solid fundamental backdrop and expectations of Fed policy easing, silver's medium-term trend remains bullish.
Source: Newsmaker.id
