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Silver hits fresh 14-year peak
AI Summary
- Silver prices hit a fresh 14-year high, on track to surpass $43 per ounce for the first time since 2011, supported by a weaker U.S. dollar
- The Federal Reserve is expected to announce at least a 25-basis-point rate cut during its key monetary policy meeting, with markets pricing in a 100% chance of a cut this week
- President Trump has been pressuring Fed Chair Jerome Powell for a larger reduction in the benchmark rate, citing risks to the U.S. housing market
Silver prices rose in the European market on Tuesday, extending gains for the fifth consecutive session and hitting a fresh 14-year high. The metal is now on track to surpass the $43 per ounce threshold for the first time since 2011, supported by the broad decline in U.S. dollar levels.
Later today, the Federal Reserve kicks off its key monetary policy meeting, with decisions due Wednesday. Markets broadly expect at least a 25-basis-point rate cut.
Price Overview
• Silver prices today: The metal rose 0.25% to $42.78 an ounce — the highest since September 2011 — up from an opening level of $42.68, after touching an intraday low of $42.35.
• On Monday, silver settled 1.2% higher, marking a fourth straight daily gain, aided by weaker U.S. dollar and Treasury yields.
U.S. Dollar
The dollar index fell 0.3% on Tuesday, extending losses into a second session and hitting a 10-week low at 97.04, reflecting continued weakness of the U.S. currency against a basket of global peers.
As is well known, a weaker U.S. dollar makes dollar-denominated precious metals more attractive to holders of other currencies. The current drop stems from active selling of the greenback ahead of the Fed’s expected 25-basis-point rate cut on Wednesday.
This comes as President Donald Trump continues to pressure Fed policymakers for deeper cuts. In a social media post on Monday, Trump urged Fed Chair Jerome Powell to deliver a “larger” reduction in the benchmark rate, citing risks to the U.S. housing market.
Federal Reserve
The Fed’s two-day meeting begins later today, with decisions due Wednesday. Markets expect a 25-basis-point cut, while policymakers’ statement, economic projections, and Powell’s remarks will provide stronger clues on the likelihood of further easing later this year.
Rate Expectations
• According to CME’s FedWatch tool: markets are pricing a 100% chance of a 25-basis-point cut this week, and a 4% chance of a larger 50-point move.
• For October, rate-cut expectations remain fully priced at 100% for 25 basis points, with just 3% odds for a deeper 50-point cut.
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