"Silver hovered near 14-year highs on Tuesday as investor sentiment remained strong ahead of this week's expected Federal Reserve rate cut. Markets are nearly fully pricing a 25-basis-point reduction, with multiple cuts projected by year-end. President Trump further amplified the pressure, urging Chair Powell to act decisively due to housing sector weakness. The pressure on the central bank could also drive demand for precious metals as investors hedge against the erosion of the Federal Reserve's independence."
"Elsewhere, Canada's central bank is also expected to ease policy this week, enhancing silver's appeal as a non-yielding asset. Silver could find additional support if China's central bank follows the Fed's lead, as concerns about the economy continue. Meanwhile, industrial demand remains a key tailwind, with ongoing needs in the solar, EV, and electronics sectors continuing to tighten the physical silver market. Investors could remain attentive to the monetary policy decisions and new sentiment-moving data releases."
Silver edged near 14-year highs as investor sentiment strengthened ahead of an expected Federal Reserve rate cut. Markets are largely pricing a 25-basis-point reduction with multiple cuts projected by year-end, and political pressure has increased calls for decisive action. Expectations of easing by the Bank of Canada and potential follow-through from China could further support silver as a non-yielding asset. Industrial demand from solar, electric vehicle, and electronics sectors continues to tighten the physical market. Investors are likely to monitor monetary policy decisions and incoming data that could shift sentiment and price dynamics.
Read at London Business News | Londonlovesbusiness.com
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