Silver Steady, Powell Cautious, PCE Focus
Silver prices held steady in the US session on Wednesday, hovering around a 14-year high as markets continued to assess the prospects for further Fed easing. Recent data placed XAG/USD around $44.1/oz, after a sharp rise throughout September driven by expectations of two more interest rate cuts this year. Jerome Powell's cautious tone—considering stubborn inflation versus a weakening job market—has the market focused on the PCE release later this week for confirmation of policy direction.
Buying interest was also supported by a safe-haven narrative amid geopolitical tensions in Eastern Europe. NATO toughened its stance against Moscow, while Ukrainian drone attacks on Russian energy facilities re-highlighted supply risks and sparked demand for safe-haven assets. Gold's rise to a new record this week also "pulled" silver as a sibling asset, maintaining the white metal's upward bias.
Fundamentally, this year's silver rally is supported by a combination of potentially lower interest rates and structural support from industrial demand (photovoltaics/semiconductors) amid relatively tight supply—making prices sensitive to surprises in US inflation data and the dollar. As long as the PCE doesn't overheat and FedWatch maintains a high probability of a rate cut, consolidation above $43.5–44.0 has the potential to continue, with the next psychological target at $44.5.
Source: Newsmaker.id
