Global demand and the Fed's rate cut pushed silver prices to $41.90, while easing geopolitical risks limited gains.
2025-09-19 10:56:55
Silver prices (XAG/USD) climbed to around $41.90 during Asian trading hours on Friday, continuing a moderate upward trend. This upward momentum was mainly driven by the policy shift of the U.S. Federal Reserve (Fed).
The Federal Reserve announced a 25 basis point interest rate cut at its September meeting, the first since December last year, and hinted at further rate cuts this year. Lower interest rates reduce the opportunity cost of holding non-yielding assets, thereby providing support for silver prices.
On the demand side, the rapid development of the photovoltaic industry continues to drive up demand for silver. As a core material in the photovoltaic industry, silver consumption remains high.
Market research shows that the Saudi sovereign wealth fund has recently continued to increase its holdings of silver ETFs, indicating that large institutional investors maintain confidence in the long-term value of precious metals. At the same time, the weakening trend of the US dollar has also enhanced the overall appeal of commodities.
On the other hand, the easing of some geopolitical risks has limited the safe-haven premium of silver prices. As the situation between Russia and Ukraine has eased, the weakening of risk aversion may limit further breakthroughs in silver prices.
U.S. President Trump said in a meeting with British Prime Minister Keir Starmer that resolving the Russia-Ukraine conflict is more complicated than expected, but he remains hopeful of positive progress in the near future.
Market analysts pointed out: "Although global demand and a weaker US dollar provide solid support for silver prices, the upside potential of silver prices may be limited as geopolitical tensions cool down."
From a technical perspective, XAG/USD formed short-term support around $41.50, with resistance concentrated in the $42.30 to $42.80 range. If silver prices break through this range, they may further challenge the year-to-date high of $43.50.
On the contrary, if it falls below $41.50, the next support level will be at $40.80. The RSI indicator is still in the neutral zone, indicating that silver prices are expected to maintain a strong and volatile pattern.
Editor's opinion:
The current upward momentum in silver prices is driven by both global demand and monetary policy, but the pace of its rise may moderate as geopolitical risks ease. The core logic behind silver prices in the medium and long term remains the continued expansion of the photovoltaic industry and industrial demand, while the short-term trend will primarily depend on the interplay of US dollar trends and geopolitical risk sentiment.
The Federal Reserve announced a 25 basis point interest rate cut at its September meeting, the first since December last year, and hinted at further rate cuts this year. Lower interest rates reduce the opportunity cost of holding non-yielding assets, thereby providing support for silver prices.
On the demand side, the rapid development of the photovoltaic industry continues to drive up demand for silver. As a core material in the photovoltaic industry, silver consumption remains high.
Market research shows that the Saudi sovereign wealth fund has recently continued to increase its holdings of silver ETFs, indicating that large institutional investors maintain confidence in the long-term value of precious metals. At the same time, the weakening trend of the US dollar has also enhanced the overall appeal of commodities.
On the other hand, the easing of some geopolitical risks has limited the safe-haven premium of silver prices. As the situation between Russia and Ukraine has eased, the weakening of risk aversion may limit further breakthroughs in silver prices.
U.S. President Trump said in a meeting with British Prime Minister Keir Starmer that resolving the Russia-Ukraine conflict is more complicated than expected, but he remains hopeful of positive progress in the near future.
Market analysts pointed out: "Although global demand and a weaker US dollar provide solid support for silver prices, the upside potential of silver prices may be limited as geopolitical tensions cool down."
From a technical perspective, XAG/USD formed short-term support around $41.50, with resistance concentrated in the $42.30 to $42.80 range. If silver prices break through this range, they may further challenge the year-to-date high of $43.50.
On the contrary, if it falls below $41.50, the next support level will be at $40.80. The RSI indicator is still in the neutral zone, indicating that silver prices are expected to maintain a strong and volatile pattern.
Editor's opinion:
The current upward momentum in silver prices is driven by both global demand and monetary policy, but the pace of its rise may moderate as geopolitical risks ease. The core logic behind silver prices in the medium and long term remains the continued expansion of the photovoltaic industry and industrial demand, while the short-term trend will primarily depend on the interplay of US dollar trends and geopolitical risk sentiment.
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