Silver is climbing Friday, up 0.37% to trade around $64.70 as the precious metal recovers from recent losses amid shifting Federal Reserve expectations. The bounce comes as market participants dial back aggressive rate hike bets, providing fresh support for non-yielding assets like silver.
The metal’s recovery follows a period of correction that saw prices retreat from elevated levels. Weakening conviction around imminent Fed tightening is reducing the opportunity cost of holding precious metals, which don’t generate interest income. This shift in monetary policy outlook is prompting traders to rebuild positions in safe-haven and inflation-hedge assets.
The move higher affects precious metals traders, commodity-focused funds, and portfolio managers balancing exposure between metals and interest-bearing instruments. With rate hike speculation cooling, capital flows are rotating back into alternative stores of value.
FXnCO Insight
Traders should monitor upcoming Fed communications closely, as any dovish pivot confirmation could extend silver’s rally while hawkish surprises may quickly reverse current gains.
Source: FXStreet