Lower Yields and Rate Cut Expectations Boost Silver
The lower bond yields, along with the prospect of multiple rate cuts, are enhancing silver’s attractiveness as an investment. As interest rates drop, precious metals typically gain favor due to their ability to hold value in a low-yield environment.
Traders are now closely watching upcoming US economic reports, including Retail Sales and Weekly Jobless Claims, which could provide more insight into the Federal Reserve’s policy path.
Central Bank Moves and Geopolitical Tensions Influence Silver Prices
In addition to US developments, central bank policies from Europe and beyond are impacting the outlook for silver. The European Central Bank is expected to cut its main refinancing rate by 25 basis points, while the Bank of England and the Reserve Bank of New Zealand are also signaling potential rate reductions.
These moves reflect global efforts to ease economic pressures, which could further support demand for safe-haven assets like silver. Although geopolitical tensions in the Middle East are contributing to safe-haven demand, the market is focusing more on economic factors.
Silver prices are likely to stay elevated if central banks continue their dovish policies and bond yields remain low, offering investors protection against market uncertainty.
Short-Term Forecast
Silver prices are likely to remain bullish if they hold above $31.41, supported by falling US Treasury yields and rate cut expectations. A break above $31.92 could drive gains.