Gold’s breakout above $ 3,000 per ounce has been an important catalyst for the strength of Silver. The Golf is fed by increased geopolitical risks and concerns about trade policy. Israeli air strikes on Gaza, who ended a two-month ceasefire, have led to an almost to assets of safe haven. In the meantime, uncertainty about American rates – including a 25% duty on steel and aluminum – has the further demand for gold driven, indirectly supported by the Silver price action.
FED -Policy Unsighture adds market volatility
The two -day meeting of the Federal Reserve is now in Focus because policy makers assess the growing internship risks. Although inflation has declined somewhat, the newest survey of the University of Michigan revealed the biggest leap in long-term inflation expectations since 1993. At the same time, economic growth delays, with consumer and business trust deteriorating. The FED is expected to keep the rates stable, but traders are increasingly wondering whether the expected rate reductions will be released as expected.
Rates and inflation risks can delay the gears of the rates
Trade policy remains an important wildcard. The chairman of the Federal Reserve Jerome Powell has triggered the inflationary effects of a single round rates, but a long -term escalation could increase the price pressure. With the increasing inflation expectations, the Fed can resist cut percentages as aggressive as the market expects. The current futures prizes are suggesting three cuts this year, but the tone of Powell in the press conference after the meeting will be crucial in setting the market direction.
Silver Outlook: Strong potential, but need for caution
The upward momentum of Silver remains intact, supported by the power of Gold and the global uncertainty. However, traders must be aware of potential volatility that is linked to FED policy signals. A more ragged attitude of Powell could limit further profit in the short term, while the confirmation of the expected tariff reductions would strengthen the Bullish Case of Silver. For now, the following technical goal remains $ 34.87- $ 35.40, but any shift in the expectations of the FED can lead to a sharp reassessment of the potential in the short term of Silver.
More information in our economic calendar.