Silver Price News: Silver Shines as Dollar Dips, Rate Cuts Loom

Silver prices gained further ground on Friday, building on Thursday’s gains, as the precious metals complex saw support from a falling dollar and buoyant mood over expected interest rate cuts.

Silver prices had made modest but steady gains in the first three days of the week, but the bullish momentum went into overdrive on Thursday and Friday, with gold hitting a fresh all-time high and silver notching up a high of almost $31.00 an ounce.

The gains for silver saw the grey metal rise to its highest price since July 17 – a two-month high.

The strength for precious metals came after the European Central bank cut interest rates by 25 basis points on Thursday, serving to highlight the US Fed’s meeting on September 18 which is widely expected to see the start of a rate cutting cycle.

Market bets were roughly 50-50 on the chances of a 25 or 50 basis point cut, according to the latest figures on Friday from the CME FedWatch tool: CME FedWatch – CME Group. This is a marked shift from a couple of days ago when data suggested only a 30% probability of a bigger 50-point cut.

On the technical charts, silver’s late gains last week show that the market is now testing the upper boundary of a declining trend channel that’s been in play since late May.