FX.co ★ Silver Holds Near 14-Year Peak

Silver prices remained robust, trading above $42 per ounce on Monday, as they hovered near their highest levels in 14 years. This surge comes as investors prepared for an anticipated interest rate cut by the US Federal Reserve this week. Market projections indicate a high probability—around 96%—of a quarter-percentage-point reduction on Wednesday, alongside a smaller 4% chance of a more aggressive half-point cut. These expectations were fueled by recent US economic data highlighting a deceleration in the labor market and muted inflationary pressures. Meanwhile, central banks in Canada and China are also anticipated to implement policy easing measures this week, unlike their Japanese and British counterparts, who are expected to maintain current stances. On the geopolitical stage, US and Chinese representatives commenced discussions in Madrid on Sunday, addressing topics such as national security, trade, and economic concerns. The silver market has been bolstered by industrial demand, particularly from sectors such as solar energy, electric vehicles, and electronics, while ongoing supply constraints continue to support elevated prices.