Silver Slides as Firm Dollar, Hawkish Fed Talk
(MENAFN- MENAFNEditorial) Silver gave back Wednesda’’s gains on Thursday as the US dollar remained close to its highest level since April 2025, lifted by Federal Reserve officials signalling that the fight against inflation is not over. A stronger dollar could continue to weigh on the metal.
Fed Governor Michelle Bowman said persistent inflation leaves more work to do. The monetary policy debate has moved from whether the Fed raises rates at its December meeting to how far it goes, with some probability of a half-point move being priced in. Higher expected US rates raise the cost of holding silver.
Fri’ay’s US producer price data is the next test. A firm print would cement a December hike and keep silver on the defensive, while a soft reading would revive doubts over tightening beyond December and give the metal room to recover.
The 25th November PCE release gives the Fed its preferred inflation gauge ahead of the decision. Until the Fed signals an end to rate hikes, silver will remain negatively exposed to monetary policy expectations
Fed Governor Michelle Bowman said persistent inflation leaves more work to do. The monetary policy debate has moved from whether the Fed raises rates at its December meeting to how far it goes, with some probability of a half-point move being priced in. Higher expected US rates raise the cost of holding silver.
Fri’ay’s US producer price data is the next test. A firm print would cement a December hike and keep silver on the defensive, while a soft reading would revive doubts over tightening beyond December and give the metal room to recover.
The 25th November PCE release gives the Fed its preferred inflation gauge ahead of the decision. Until the Fed signals an end to rate hikes, silver will remain negatively exposed to monetary policy expectations
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