FX.co ★ Silver Holds Strong After Fed

Silver prices remained near $115 per ounce on Wednesday, reaching new record highs due to a combination of safe-haven demand, a significantly weaker US dollar, and robust physical and retail buying. President Trump's comments, which played down the dollar's decline to a four-year low, reinforced the view that the administration accepts a weaker currency amid renewed tariff threats and ongoing Federal Reserve pressures. This scenario continues to drive investments in precious metals. The Federal Reserve's decision to keep interest rates steady at 3.50%–3.75% offered little guidance but underscored an environment of heightened policy uncertainty, which remains favorable for non-yielding assets like silver. Silver has also distinguished itself through a tightening market structure, especially noted in China, where a dedicated silver fund halted trading after intense demand pushed its premium well above its net asset value. Additionally, manufacturers, responding to the demand, have shifted production from jewelry to 1-kilogram investment bars, further constraining supply and maintaining high price levels.