Silver hits 14-year high as Fed rate cut expectations rise to 93%
2025-09-24 16:22:17
Silver (XAG/USD) rebounded to $44.10 an ounce in European trading, staying close to Tuesday's 14-year high of $44.47. Investors are betting the Federal Reserve will cut interest rates by 25 basis points in October.
Market expectations for a rate cut have risen to 93%, up from 90% the previous day, according to the CME FedWatch tool. Traders are awaiting this week's release of annualized U.S. second-quarter GDP data and the core PCE price index, which will determine the size and timing of any rate cuts.
"The current market focus is on whether the Federal Reserve will release stronger easing signals. The 93% probability fully demonstrates investor confidence," pointed out a market analyst.
Geopolitical risks also boosted safe-haven buying of silver. NATO said it would make a "strong response" to Russia's recent airspace violations.
Meanwhile, US President Trump warned at the UN General Assembly that if Russia does not end its military action in Ukraine, the United States will be prepared to implement a "very strong round of tariffs." This move increased investors' concerns about market uncertainty, thus providing additional support for silver.
Beyond macroeconomic and geopolitical factors, silver prices are also supported by solid fundamentals. Tight supply and robust demand are driving prices. In particular, continued growth in demand from the solar energy, electric vehicles, and electronics industries has led to a rapid absorption of last year's inventory backlog.
Imports from India are expected to climb in the coming months, reflecting demand for both investment and industrial uses.
The daily chart shows that silver remains strong above $44, and the short-term trend continues to be bullish. The daily chart shows that the price is running steadily in an upward channel. If it can stabilize above $43.80, the market is expected to continue to hit the $45 mark.
The lower support level is at $43.20, which may trigger profit-taking if it falls below, but the overall trend remains upward.
Editor's opinion:
Silver's current upward trend is supported by a combination of monetary policy, risk aversion, and industrial demand. In particular, the combination of expectations of a Federal Reserve rate cut and NATO's hawkish stance creates conditions for silver to continue its upward trend in the short term.
However, it is important to note that if US economic data is unexpectedly strong, the US dollar index may rebound, thus suppressing the rise of silver. Therefore, pay attention to the key resistance level of $44.50, which may open up further upside potential only after it breaks through.
Market expectations for a rate cut have risen to 93%, up from 90% the previous day, according to the CME FedWatch tool. Traders are awaiting this week's release of annualized U.S. second-quarter GDP data and the core PCE price index, which will determine the size and timing of any rate cuts.
"The current market focus is on whether the Federal Reserve will release stronger easing signals. The 93% probability fully demonstrates investor confidence," pointed out a market analyst.
Geopolitical risks also boosted safe-haven buying of silver. NATO said it would make a "strong response" to Russia's recent airspace violations.
Meanwhile, US President Trump warned at the UN General Assembly that if Russia does not end its military action in Ukraine, the United States will be prepared to implement a "very strong round of tariffs." This move increased investors' concerns about market uncertainty, thus providing additional support for silver.
Beyond macroeconomic and geopolitical factors, silver prices are also supported by solid fundamentals. Tight supply and robust demand are driving prices. In particular, continued growth in demand from the solar energy, electric vehicles, and electronics industries has led to a rapid absorption of last year's inventory backlog.
Imports from India are expected to climb in the coming months, reflecting demand for both investment and industrial uses.
The daily chart shows that silver remains strong above $44, and the short-term trend continues to be bullish. The daily chart shows that the price is running steadily in an upward channel. If it can stabilize above $43.80, the market is expected to continue to hit the $45 mark.
The lower support level is at $43.20, which may trigger profit-taking if it falls below, but the overall trend remains upward.
Editor's opinion:
Silver's current upward trend is supported by a combination of monetary policy, risk aversion, and industrial demand. In particular, the combination of expectations of a Federal Reserve rate cut and NATO's hawkish stance creates conditions for silver to continue its upward trend in the short term.
However, it is important to note that if US economic data is unexpectedly strong, the US dollar index may rebound, thus suppressing the rise of silver. Therefore, pay attention to the key resistance level of $44.50, which may open up further upside potential only after it breaks through.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
