FX.co ★ Silver Holds Advance on Dovish Fed Bets

Silver prices remained steady at approximately $37.8 per ounce on Wednesday, following a three-day upward trend, as anticipation for potential Federal Reserve interest rate reductions continues to intensify. The recent ISM Services PMI for July revealed tepid growth, a decline in employment, and consistent pricing pressures, which further highlighted signs of a cooling labor market, following last week's weaker-than-expected payroll figures. The markets are now factoring in the possibility of two Federal Reserve rate cuts by the end of the year, with the first potentially being implemented in September. Echoing this dovish sentiment, San Francisco Fed President Mary Daly emphasized the current labor market's challenges and the limited inflationary effects of the tariffs imposed by Trump. Furthermore, political uncertainty contributed to silver’s boost following the resignation of Fed Governor Adriana Kugler, which raised concerns about the independence of the central bank and provided an opportunity for President Trump to nominate a more dovish successor.