FX.co ★ Silver Rises as Trump Fires Fed’s Cook

Silver prices experienced a rise, surpassing $38.7 per ounce on Tuesday, rebounding from the losses recorded in the previous session. This increase occurred following US President Donald Trump's decision to remove Federal Reserve Governor Lisa Cook due to accusations of mortgage fraud. This action has heightened concerns regarding the Fed's independence and its capacity to uphold a monetary policy that is uninfluenced by political pressures. Analysts suggest that Cook’s removal might increase the probability of earlier interest rate reductions, considering Trump’s consistent pressure on the central bank to decrease borrowing costs. On the industrial front, strong demand from the photovoltaic sector in China continues to support silver demand. Recent statistics indicated that Chinese solar cell exports surged by over 70% in the first half of the year, primarily driven by strong demand from India. In May, China installed more than 93 gigawatts of solar capacity, marking a record high and a 300% increase from the previous year. This was in anticipation of impending policy changes that will complicate the process of connecting new panels to the grid.