Silver Price News: Silver Shines As Market Reacts to Interest Rate Cut

Silver prices pushed higher on Thursday to top the $31.00 an ounce level, taking support after Wednesday’s US interest rate cut.

Prices climbed as high as $31.34 an ounce, compared with around $30.20 an ounce in late trades on Wednesday.

Silver, like gold, took support from the US Fed’s decision to cut interest rates by 50 basis points on Wednesday, in a move that benefits non-yielding assets like precious metals. Expectations had been mixed on the size of the cut, but the markets had been pricing in the start of lower rates for some time.

With the latest gains taking silver to around $31.00 an ounce, the metal is pushing at the upper boundary of a three-month downward-sloping price channel.

As a precious metal, the trend towards lower interest rates is supportive for silver. From an industrial demand perspective, recent weeks have seen disappointing data on industrial output around the world, and the markets will be hoping that lower borrowing costs in the major economies can result in a soft landing rather than a recession.

Looking ahead, the markets will be keeping an eye on Friday’s Euro Area consumer confidence figures as well as a speech by ECB President Christine Lagarde. Further out, Monday will see a flurry of data releases on manufacturing in several major economies, providing the latest snapshot of industrial demand.