Silver Prices Reach Fresh Monthly High Amid Dovish Fed Bets
Silver prices (XAG/USD) have surged, marking an almost five-week high at approximately $32.30 during Thursday’s European trading session. This uptick stemmed from traders fully pricing in the possibility of a Federal Reserve interest rate cut of 25 basis points to a range of 4.25%-4.50% in the upcoming policy meeting.
The dovish sentiment surrounding the Federal Reserve benefits non-yielding assets like silver, as lower rates reduce opportunity costs for holding these investments. As traders anticipate the Fed’s next move, expectations surrounding silver will remain bullish in the short term, catering to rising demand.
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