Silver’s Recovery Hinges on Fed Policy and Trade Talks

Silver prices are showing tentative signs of stabilization following last week's significant downturn. The precious metal is currently trading near $47.50 per ounce, recovering from monthly lows around $45.85. Market participants are divided on whether this represents a temporary pause in the downward trend or the beginning of a sustained recovery.

Today's Federal Reserve policy announcement represents a crucial moment for precious metals. While markets widely anticipate a 25 basis point interest rate reduction, the forward guidance from Chairman Jerome Powell will likely prove more significant for silver's trajectory. A dovish policy stance could provide substantial support for the metal, potentially ending its recent weakness.

Compounding the uncertainty, the ongoing U.S. government shutdown—now in its fifth week—continues to delay critical economic data releases, making monetary policy assessment increasingly challenging for investors and policymakers alike.

Trade Negotiations Undermine Safe-Haven Appeal

Optimism surrounding trade relations between the United States and China continues to pressure demand for defensive assets like silver. President Trump and China's Xi Jinping are scheduled to meet tomorrow in South Korea for pivotal discussions aimed at establishing a framework that would suspend planned U.S. tariff increases and halt China's expansion of rare earth export controls.

Should investors sell immediately? Or is it worth buying Silber Preis?

In a significant development, U.S. Treasury Secretary Scott Bessent has already removed the threat of 100% tariffs from consideration, while Beijing has agreed to pause its planned export control expansions for one year.

Last week's market reaction was pronounced:
- Silver declined by more than 6% over the week
- Substantial profit-taking followed October's record highs near $54.49
- Safe-haven demand eroded as trade optimism grew
- Technical support around $45.90 has held thus far

Strong Yearly Performance Despite Recent Pressure

Despite a four-week pullback of 2.05%, silver maintains an impressive yearly gain of 36.53%. Market researchers at Trading Economics project the metal could reach $49.37 by quarter's end, with a twelve-month forecast of $52.95.

The crucial support region near $45.90 has been successfully defended for now. The short-term direction for silver prices appears heavily dependent on today's Federal Reserve commentary and tomorrow's trade negotiation outcomes between the world's two largest economies.