Silver prices have surged, with XAG/USD nearing the $32 mark, driven by market speculation over potential Federal Reserve rate cuts. Investors are closely monitoring economic data, suggesting the Fed may ease its monetary policy sooner than expected to counter slowing growth and tame inflation. This has bolstered demand for precious metals, often seen as safe-haven assets in times of monetary easing.
The rally in silver prices reflects broader market sentiment, as the U.S. dollar weakens and Treasury yields dip amid increasing rate cut bets. A sustained break above the $32 hurdle could signal further bullish momentum for silver. However, analysts warn that any hawkish surprises from upcoming Fed communications could cap gains or trigger a correction.
