Silver is currently trading at around US$41.26 per ounce in Asian trading on Tuesday, a slight decline of 0.19% from the previous session. This level remains near its highest level in recent years, reflecting moderate volatility but remaining below the broader bullish trend.

The decline in silver prices was driven by market optimism regarding the possibility of a Fed interest rate cut. Expectations of monetary policy easing have depressed bond yields, reducing the appeal of non-interest-bearing "safe haven" assets like silver. Furthermore, a weakening US dollar has strengthened investment demand for precious metals—a phenomenon that has also supported recent increases in gold and silver prices.

Fundamentally, silver demand is divided into two main categories: investment and industrial. Investment demand has surged as silver is increasingly seen as a hedge against inflation and global economic uncertainty. Meanwhile, the industrial sector—particularly electronics and renewable energy—has also seen strong demand from countries like China, which has kept overall supply tight.

Despite the slight decline, the current price level indicates that the market is in a consolidation phase after a strong rally throughout the year. Silver has surged approximately 45% year-to-date, touching the psychological barrier of US$40, fueling market participants' enthusiasm for a potential breakout to US$42 or higher if the Fed's sentiment remains dovish and industrial demand remains solid.

Source: Newsmaker.id