Silver Holds High
Silver prices held steady around a record high on Thursday, hovering near $49 per ounce after hitting a new high the previous day. The boost came from global political and economic uncertainty and hopes for a Fed interest rate cut, which maintained interest in the hedge.
In the US, the government shutdown clouded the economic outlook by delaying key data for policymakers. The latest FOMC minutes highlighted rising risks in the labor market that could justify a rate cut, although inflation concerns remain. The market now awaits Fed Chair Jerome Powell's speech for further guidance.
Outside the US, political turmoil in France and a leadership change in Japan have added to global uncertainty. These factors have so far tended to maintain silver's appeal as a hedge, even as the direction of interest rate policy remains a key determinant.
Fundamentally, the physical silver market remains tight. Industrial demand from the solar and electronics sectors remains strong, while the projected global supply deficit persists through 2025. The combination of tight supply and the electrification theme has helped keep prices in a high range, although the potential for near-term volatility remains. (ads)
Source: Newsmaker.id
