Silver Prices Find Balance with Fed's Rate Cut Signals

In the global commodity markets, after the observed wave of selling in recent weeks, silver prices entered the new week with a sideways trend. As of Monday, the price per ounce has settled at around 50 dollars. One significant factor behind silver's stable outlook has been the "dovish" signals coming from the U.S. Federal Reserve (Fed).

One of the factors strengthening expectations for a rate cut from the Fed is the signal indicated in the statements made by New York Fed President John Williams, suggesting that a rate cut is still on the table in the near term. Williams stated that the weakness in the labor market poses a greater risk than inflation. These statements have increased market expectations regarding rate cuts, thereby enhancing the allure of precious metals like silver.

Changes in the Fed's policies typically prompt investors to turn towards traditional safe-haven assets like commodities. During this period, silver has become an important value preservation tool for investors. Especially in the case of falling interest rates, precious metals like silver have the potential to increase in value, leading to heightened demand from investors.

Historically, silver has been a trusted asset for investors during inflationary periods. There may be a permanent rise in the price of silver per ounce during this process within the Fed. However, it is crucial to pay attention to market fluctuations and external factors affecting silver prices during this period. The release of economic data and the economic outlook in the U.S. can determine the direction of silver prices in the short and medium term.

Additionally, for international investors, silver is not only a value preservation tool but also an important industrial metal. Therefore, silver demand may fluctuate based on developments in the industrial sector. Thus, the Fed's policies and the global economic situation emerge as decisive factors influencing the trends in silver prices.