Silver Firms on Dovish Fed Signals

Silver prices held firm above $36.5 per ounce on Friday after rising for two straight sessions, underpinned by a weakening dollar amid bets on deeper Federal Reserve rate cuts. Fed Chair Jerome Powell struck a dovish tone during recent congressional testimony, suggesting that without inflationary pressures from tariffs, the central bank would likely have resumed monetary easing. President Donald Trump may also announce his pick for the next Fed Chair as early as September or October—potentially installing a “shadow” chair to influence a more dovish direction. On the trade front, investor sentiment improved after the White House downplayed the urgency of upcoming tariff deadlines, easing fears of an extended trade conflict. Beyond macro drivers, silver remains supported by strong industrial demand and ongoing supply constraints. The metal has significantly outperformed gold in June, rising roughly 11% compared to gold’s flat performance.