Silver Price News: Silver Tops $28.50 Mark

Silver prices gained ground on Tuesday, moving in line with moderate strength in gold.

Silver climbed as high as $28.59 an ounce on Tuesday, up from around $28.40 an ounce in late trades on Monday.

The precious metals markets were looking ahead to US inflation and producer prices figures due out on Wednesday and Thursday, respectively, ahead of a widely expected decision by the US Fed to start cutting interest rates at its upcoming meeting on September 18^th.

The long-expected decision on monetary policy is a supportive element for precious metals, as lower borrowing costs cut the opportunity cost of holding non-interest-bearing investments.

After slipping lower in the last few days of August, silver prices have shown indications of support at around the $27.70 an ounce mark. Further gains could be on the cards if this level continues to survive further tests on the downside, while any renewed weakness for silver prices could see a re-test of the August lows of around $26.50 an ounce.

Silver has been on a downward-sloping price trend since late May, when prices topped $32.00 an ounce, but the longer-term charts show the grey metal continuing on a bullish trend, having climbed from as low as $22.00 an ounce in February.