Lower yields and interest rate cut expectations are boosting silver
The lower bond yields, together with the prospect of multiple interest rate cuts, increase the attractiveness of silver as an investment. As interest rates decline, precious metals tend to gain popularity due to their ability to retain value in a low-yield environment.
Traders are now keeping a close eye on upcoming U.S. economic reports, including retail sales and weekly jobless claims, which could provide further insight into the Federal Reserve’s policy trajectory.
Central bank movements and geopolitical tensions influence silver prices
In addition to developments in the US, the policies of central banks from Europe and beyond also influence the prospects for silver. The European Central Bank is expected to cut its key refinancing rate by 25 basis points, while the Bank of England and the Reserve Bank of New Zealand also signal potential rate cuts.
These moves reflect global efforts to ease economic pressure, which could further support demand for safe havens like silver. Although geopolitical tensions in the Middle East contribute to the demand for safe havens, the market is focusing more on economic factors.
Silver prices are likely to remain high as central banks continue their accommodative policies and bond yields remain low, providing investors with protection from market uncertainty.
Short-term forecasting
Silver prices are likely to remain bullish if they remain above $31.41, supported by falling US Treasury yields and expectations for rate cuts. A break above $31.92 could bring gains.