The Silver price (XAG/USD) gains ground to around $41.90 during the Asian trading hours on Friday. The white metal finds support from the US Federal Reserve (Fed) rate cuts.

As widely expected, the Fed decided to cut its benchmark interest rate at its September meeting on Wednesday, the first time since December, and signaled more reductions are likely this year. Fed Chair Jerome Powell pointed to growing signs of weakness in the labor market to explain why officials decided it was time to cut rates after holding them steady since December amid concerns over tariff-driven inflation. Lower interest rates could reduce the opportunity cost of holding Silver, supporting the non-yielding white metal.

Strong support from global demand, especially from industrial use in photovoltaics, where China dominates, might contribute to Silver's upside. Saudi Arabia's sovereign wealth fund has been buying silver ETFs, while sentiment around commodities is improving on a weaker US Dollar (USD) outlook.

On the other hand, the easing of geopolitical tensions between Russia and Ukraine could improve the sentiment and weigh on the safe-haven asset like Silver. US President Donald Trump admitted that he'd been surprised by how difficult the conflict between Russia and Ukraine had been to resolve. However, he stated during a press conference with UK Prime Minister Keir Starmer that he hopes to have some good news from both sides.

Source: FXstreet