FX.co ★ Silver Declines on Stronger Dollar

On Wednesday, silver prices dropped to around $37 per ounce, reaching their lowest point in over two weeks as the dollar strengthened ahead of significant Federal Reserve events. Investors are eagerly anticipating the release of the minutes from the Fed's July meeting, which will be closely analyzed, especially following the first policy dissents since 1993 during that gathering. Fed Governors Christopher Waller and Michelle Bowman expressed a preference for a quarter-point rate cut rather than maintaining rates, highlighting divisions within the committee. Attention will then turn to Fed Chair Jerome Powell’s speech at the Jackson Hole symposium, with markets keenly observing for any signals to moderate expectations of monetary easing. Currently, traders are predicting an 85% likelihood of a rate cut in September and are factoring in approximately 54 basis points of cuts by the end of the year. Contributing to the negative sentiment, diminishing geopolitical tensions related to ongoing Ukraine peace discussions and reduced worries about a global trade war have further lowered the demand for precious metals as safe havens.