09.09.202503:50:57UTC+00Silver Holds at 14-Year High on Dovish Fed Bets

Silver traded around $41.2 per ounce on Tuesday, approaching its highest level since 2011, as growing expectations of interest rate cuts by the US Federal Reserve bolstered demand for precious metals. Investors are eagerly anticipating updates to the US employment data, spanning April 2024 to March 2025, which could show downward revisions of up to 800,000 jobs. Such revisions would indicate that the Fed may be falling short of its full-employment objective. Attention is also centered on two significant inflation reports expected this week, which could influence the Fed's upcoming policy decisions. The Producer Price Index (PPI) for August is set to be released on Wednesday, followed by the Consumer Price Index (CPI) on Thursday. Current market predictions suggest an 89% likelihood of a 25 basis point rate reduction at next week's meeting, although some traders are still betting on a larger 50 basis point cut. On the industrial side, strong demand from industries such as solar energy, electric vehicles, and electronics is further tightening the physical silver market, especially as supply constraints persist.