Silver Prices Hold Firm After Federal Reserve Decision
Silver prices held firm near $115 per ounce on Wednesday, hovering at fresh record highs as strong safe-haven demand continued to underpin the market. The rally has been fueled by a sharply weaker U.S. dollar, alongside robust physical and retail buying interest.
Comments from U.S. President Donald Trump, which downplayed the dollar’s slide to four-year lows, reinforced market expectations that the administration is comfortable with currency weakness. Renewed tariff threats and ongoing pressure on the Federal Reserve have further supported inflows into precious metals, including silver.
The Federal Reserve’s decision to keep interest rates unchanged at 3.50%–3.75% provided little immediate direction for prices. However, it reinforced a backdrop of elevated policy uncertainty, which continues to favor non-yielding assets such as silver.
What continues to set silver apart is its tightening market structure, particularly in China. A pure-play silver fund recently suspended trading after surging demand pushed its premium well above net asset value, while manufacturers have increasingly shifted production away from jewelry toward 1-kilogram investment bars. This shift has further constrained supply, helping keep silver prices elevated.
