Friday, 19 September 2025
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Fed Cut Effect: Silver Shines Again
Friday, 19 September 2025 10:43 WIB | MARKET ANALYSIS |

Silver strengthened to around $41.90 due to the impact of the Fed's interest rate cut. Lower interest rates lower the opportunity cost of holding silver, making it more attractive. Sentiment is also supported by global demand-particularly for solar panels (photovoltaics), which are largely driven by China-as well as purchases of silver ETFs by Saudi Arabian sovereign wealth funds and the prospect of a weakening US dollar.

However, silver's gains could be restrained if the appetite for safe havens wanes. Easing geopolitical tensions, such as hopes for progress in the Russia-Ukraine dialogue mentioned by US President Donald Trump and UK Prime Minister Keir Starmer, could potentially make investors more willing to take risks in other assets, potentially reducing demand for silver as a hedge.

At the time of this analysis's release, the price of silver was at $42,193.

Disclaimer:

This article is for analytical purposes only and is not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.

Source: Newsmaker.id

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