FX.co ★ Silver Rises as Fed Outlook Mulled

Silver experienced a rise of over 1% to surpass $42.2 per ounce on Friday, rebounding from earlier losses in the week as investors evaluated the prospects for interest rate reductions by the US Federal Reserve. On Wednesday, the Fed enacted a widely predicted quarter-percentage-point rate cut and anticipated another two cuts this year, while only planning for a single cut in 2026. Fed Chair Jerome Powell described this decision as a risk management measure in response to labor market challenges, emphasizing there was no immediate need to hasten the rate of easing. In other developments, the Bank of Canada also reduced its rates, whereas the Bank of England and the Bank of Japan maintained their current policies. From an industrial perspective, robust demand in sectors such as solar energy, electric vehicles, and electronics, coupled with supply limitations, continues to bolster silver prices.