FX.co ★ Silver Holds Gains on Fed Rate Cut Bets

Silver prices remained above $38.5 per ounce on Thursday, maintaining levels close to a recent three-week high. This performance was bolstered by the prospect of more significant Federal Reserve interest rate cuts anticipated for this year. Recent softening in US inflation data implies that President Donald Trump's tariffs are not heightening price pressures, while indications of a cooling labor market have further supported the dovish economic outlook. The market has almost completely factored in a rate cut for September, with some analysts predicting a more substantial reduction of 50 basis points. In addition, Treasury Secretary Scott Bessent advocated for several rate cuts, suggesting the Fed could begin its policy rate easing with an initial reduction of half a percentage point. Outside of monetary policy, traders were closely watching forthcoming US-Russia discussions in Alaska concerning the Ukraine conflict. The White House described the planned meeting between Presidents Trump and Putin as "a listening exercise," playing down expectations of any significant breakthrough toward a ceasefire.