Silver Remains Strong, What's Driving It?
Silver prices have stabilized near their highs in recent trading, following the direction of gold. At the time of writing, the XAG price was trading at $43,841. This precious metal was influenced by a combination of global factors, including a strengthening US dollar, better-than-expected US economic data, and mixed statements from Fed officials regarding the direction of interest rates.
The main factor holding back silver's gains was the strengthening US dollar following a sharp rise in US new home sales data. A stronger dollar makes silver more expensive for buyers using other currencies. This dampens short-term demand, although the medium-term trend remains positive.
Meanwhile, the Fed's interest rate policy is in the spotlight. Chairman Jerome Powell emphasized caution in cutting interest rates, while other officials pushed for clarity on the direction of easing. Lower interest rates generally support silver and gold, as these precious metals do not yield interest.
Furthermore, silver also benefits from industrial demand in the renewable energy and electronics sectors. This fundamental demand, coupled with investment inflows into precious metals, keeps silver prices strong despite pressure from the dollar. Looking ahead, the release of US PCE inflation data will be a key catalyst for silver's future direction. (ayu)
Source: Newsmaker.id
