Silver Gains as Traders Weigh Fed Outlook

Silver climbed above $69 an ounce on Thursday, moving toward two-month highs as investors continued to assess the outlook for Federal Reserve monetary policy ahead of a key meeting next month. Data released Wednesday showed US PCE prices rose more than expected in July and remained well above the Fed’s target, reinforcing a cautious outlook for interest rates. Investors now turn to Fed Chair Kevin Warsh’s speech at the annual Jackson Hole symposium on Friday, although he is not expected to provide clear guidance on the central bank’s September policy decision. Meanwhile, precious metals remained supported by the so-called debasement trade, as investors sought protection against the risk of a US debt crisis and a weaker dollar. Silver also benefited from robust industrial demand tied to the green energy transition, photovoltaic solar panels, electric vehicles and artificial intelligence data center infrastructure.

Silver prices fell toward $68 an ounce on Wednesday as investors digested fresh US economic data for clues on the Federal Reserve’s interest-rate outlook. The PCE price index rose 0.2% in July, above expectations for a 0.1% increase, while annual inflation reached 3.7% versus forecasts of 3.6%. Core PCE increased 0.2% month-over-month and 3.3% year-over-year, both in line with estimates. Consumer spending and income also came in slightly above forecasts. Separate data showed US GDP grew 1.5% in Q2, matching the initial estimate, while durable goods orders rose 1.1% in July, beating expectations of 0.5%. Markets are now pricing around a 60% chance of the Fed keeping rates unchanged next month, down from 64% before the data, according to the CME FedWatch Tool. On the geopolitical front, Iran said it had resumed talks with neighboring Oman on managing the Strait of Hormuz, amid mounting economic pressure from US President Donald Trump.

Silver held above $68 an ounce on Wednesday, trading near two-month highs as investors awaited the latest US PCE price index report, the Federal Reserve’s preferred measure of inflation. Attention also remained on Fed Chair Kevin Warsh’s speech at the annual Jackson Hole symposium on Friday, although he is not expected to provide clear guidance on the central bank’s policy decision in September. Investors continued to assess the US Treasury’s decision to double liquidity-support buyback operations for longer-dated notes and bonds, a move that helped push the dollar to a more than three-month low last week. Meanwhile, oil prices declined for a third consecutive session, easing inflation concerns and further supporting the bullish outlook for precious metals. Elsewhere, silver remained underpinned by solid industrial demand linked to the green energy transition, photovoltaic solar panels, electric vehicles and artificial intelligence data center infrastructure.