Silver’s Fundamental Strength Clashes with Fed Policy Headwinds

Silver faced a significant sell-off to conclude the week, pressured by a recalibration of interest rate expectations from Federal Reserve officials. This downward momentum occurred against a paradoxical backdrop: the physical market is heading towards its fifth consecutive annual supply deficit.

While the fundamental picture appears bullish for silver, with global demand projected to outpace mine production again in 2025, macroeconomic forces are currently dominating price action. The prospect of sustained higher interest rates in the United States diminishes the appeal of non-yielding precious metals, making interest-bearing assets relatively more attractive.

Comments from Fed policymakers signaling a commitment to a restrictive monetary policy triggered a brutal reassessment across financial Read more...