Silver prices (XAG/USD) rebounded after previous losses, trading around $69.10 per troy ounce during Asian hours on Thursday, as traders assessed the Federal Reserve's monetary policy stance ahead of Chair Kevin Warsh’s speech at the Jackson Hole symposium on Friday [1]. The market's focus remains on the Fed's next moves, especially following the release of July’s PCE price index, which accelerated to 0.2% month-on-month—surpassing the 0.1% forecast—and pushed the annual inflation rate to 3.7% [1].
The resilience in silver prices is attributed not only to shifting interest rate expectations but also to ongoing concerns about a potential US debt crisis and a weakening dollar, which have prompted investors to seek safe-haven assets [1]. Additionally, silver is benefiting from robust industrial demand, particularly from sectors such as green energy technologies, solar photovoltaic panels, electric vehicles, and infrastructure for artificial intelligence data centers [1].
TD Securities commented that while the supportive environment has aided precious metals, including silver, the current rally may be premature for a renewed run at record highs for gold, given that markets are still pricing in rate hikes for 2027 and energy market risks persist [1].
No immediate market reaction or analyst consensus on silver's short-term trajectory was provided, but the combination of inflation data, Fed policy uncertainty, and strong industrial demand continues to underpin silver’s price action [1].
CONCLUSION
Silver prices are holding firm above $69 as investors weigh Fed policy signals and strong industrial demand. While the outlook remains supported by macroeconomic and sectoral factors, analysts caution that a return to record highs may be premature given ongoing market risks and rate expectations.