Silver prices continued to gain, supported by a weakened dollar and declining US Treasury yields. This movement was influenced by Federal Reserve Chair Jerome Powell's cautious stance on rate cuts amid inflation concerns, although he suggested that easing could occur if inflation decreases. Additionally, President Trump's intention to replace Powell raised fears regarding the Fed's independence, further weighing on the dollar and benefiting silver. The metal faces a supportive outlook, predicted to experience increasing physical investment and a global deficit projected for 2025, raising demand concerns.
Silver prices are benefiting from broad-based dollar weakness and falling US Treasury yields, as the market adjusts to recent statements from Federal Reserve Chair Jerome Powell.
Powell's recent remarks reinforced expectations for more cuts this year as he indicated that monetary policy easing could resume if inflation declines appropriately.
Concerns about Federal Reserve independence following President Trump's announcement to replace Powell exacerbated the dollar's weakness and bolstered safe-haven assets like silver.
The structural fundamentals for silver remain strong, with forecasts indicating a potential fifth consecutive global deficit driven by robust industrial usage and increased physical investment in Western markets.
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