FX.co ★ Silver Prices Rebound

Silver prices experienced a roughly 1% increase, climbing to over $51 per ounce on Wednesday, marking their highest point in nearly three weeks. This rise is attributed to heightened expectations that the Federal Reserve will continue to lower interest rates this year. Additionally, optimism surrounding an imminent resolution to the US government shutdown, which would lead to the release of new economic data, further bolstered these expectations. Currently, markets are pricing in approximately a 65% likelihood of a 25-basis-point rate cut by the Fed in December, up from about 62% the previous day. Concurrently, supply pressures are anticipated to continue, with demand projected to surge, particularly with the onset of India’s wedding season and the imposition of US tariffs on silver.