Silver Price News: Silver Edges Higher in Calmer Trading

Silver prices ticked higher on Tuesday, in a largely steady day in the precious metals markets.

Prices nudged up to trade just above the $30.00 an ounce mark later in the session, having traded a few cents either side of $29.95 an ounce for most of the day. That compared with $29.92 an ounce in late trades on Monday.

The relative calm this week followed a strong rebound for silver on Friday last week, as precious metals markets reacted to comments by US Fed Chair Jerome Powell who made the case for interest rate cuts next month.

The gains came after Powell said the time had come for monetary policy to adjust, speaking at the Jackson Hole Symposium in Wyoming on Friday. The US Fed has kept interest rates steady at 5.25% to 5.5% for the last 12 months in a battle to cool inflation. And with inflation coming down nearer toward the Fed’s target of 2% more recently and concerns over the jobs market, this has given the Fed leeway to cut the cost of borrowing. Lower interest rates tend to boost the appeal of non-yield-bearing assets like gold and silver as well as stimulating the economy more broadly.

Although silver has been in a short-term bearish trend since late May, the metal has shown a longer-term bullish move since the start of the year when prices were around $22.00 to $23.00 an ounce. Support has come from a structural supply deficit that has persisted for the last three years, as annual supply has fallen short of demand since 2021.

Looking ahead, Wednesday is looking light on data releases, and the markets may keep an eye on EU economic sentiment figures due out on Thursday, as well as US GDP growth, US initial jobless claims figures and Japanese industrial production figures on the same day.