Silver Trims Gains, But Remains Near Record
Silver prices pared gains on Tuesday, holding near a 14-year high above $44 troy ounce following Federal Reserve Chairman Jerome Powell's speech. In his statement, Powell reiterated that the prospect of an interest rate cut remains open, although he emphasized that the path will depend on inflation developments and future economic data. This dovish tone triggered a decline in US bond yields, increasing the appeal of non-yielding precious metals.
The market interpreted Powell's comments as a signal that the Fed remains prepared to cut interest rates at its October and December meetings. This expectation further boosted demand for safe-haven assets, with investors seeking protection from uncertainty about the medium-term direction of monetary policy. The latest data from CME FedWatch shows the probability of a 25 basis point interest rate cut in October is above 90%, reinforcing market optimism for further easing.
In addition to monetary factors, global geopolitical tensions continue to support silver prices. Situations in the Middle East and Europe have made investors more cautious, increasing capital flows to safe-haven assets. The combination of Powell's cautious tone on inflation but a tendency to support easing, along with rising demand for safe havens, means silver prices have the potential to maintain their upward momentum in the short term.
Source: Newsmaker.id
