FX.co ★ Silver Gains Ahead of Fed Decision

Silver's price climbed to approximately $47.5 per ounce on Wednesday, rebounding from recent one-month lows in what appears to be a technical correction. Investors remain focused on the upcoming policy decision by the US Federal Reserve. It is widely anticipated that the Fed will announce a 25 basis point rate cut later today. Market participants will particularly scrutinize Fed Chair Jerome Powell's comments for insights on potential future monetary easing. Additionally, the prolonged US government shutdown, now in its fifth week, has stalled the release of critical economic data crucial for forming monetary policy expectations. Traders are also keeping a close watch on trade developments as President Trump and President Xi prepare to meet in South Korea on Thursday. This meeting aims to establish a framework that might mitigate the impact of heightened US tariffs and China's rare earth export restrictions. Last week, silver prices plummeted by over 6% following a wave of profit-taking that ensued after a record-setting rally, which raised alarms about possible overvaluation.