Silver Price News: Silver Edges Lower After Two-Month Highs

Silver prices ticked slightly lower on Tuesday but held onto the sharp gains seen at the end of the previous week.

Prices nudged lower to $30.67 an ounce, compared with around $30.77 an ounce in late trades on Monday. Prices briefly spiked above $32.00 an ounce last Friday but trading at that level could not be sustained.

Silver, like gold, continues to reflect the market’s expectation that the US Fed will cut interest rates at its meeting on Wednesday, representing the opening salvo in an expected rate-cutting cycle as the central bank seeks to stimulate the economy, now that inflation is moving closer to its target levels.

The markets appear to be pricing in a more than 60% chance of a 50-basis point cut this week and further cuts before the year is out – a scenario that would put wind in the sails of non-interest-bearing assets like gold and silver.

Despite the slight fall on Tuesday, silver continues to take support from gold prices, which climbed to a fresh all-time high of $2,590 an ounce on Monday.

On the technical charts, silver prices have shown a reluctance to move above $31.00 an ounce, which marks the upper boundary of a downward-sloping trend channel that began at the highs of over $32.60 an ounce in late May.