FX.co ★ Silver Rallies to Fresh 14-Year High

Silver prices experienced a notable increase of 2%, surpassing the $40 per ounce mark on Monday, marking the highest level since September 2011. This rise is largely attributed to strong anticipations of a rate cut by the US Federal Reserve scheduled for later this month. San Francisco Fed President Mary Daly indicated last Friday that the central bank is willing to lower interest rates amid concerns over potential risks to the labor market, pointing out that inflation driven by tariffs might be transient. Despite the Fed's preferred Personal Consumption Expenditures (PCE) inflation report indicating rising prices, market sentiment currently suggests an 88% likelihood of a 25 basis point reduction in the upcoming Fed meeting. In trade developments, a federal appeals court recently declared most of President Donald Trump’s reciprocal tariffs illegal, providing until October 14 for an appeal to the US Supreme Court. Concurrently, industrial demand has bolstered silver prices, partly due to China's booming solar industry, which has propelled solar cell exports by over 70% in the first half of the year, primarily from strong orders from India.