Silver Consolidates as Rate Cut Expectations Build

Silver (XAG/USD) is trading at $32.55, slightly above its session low of $32.43. The metal is holding firm, with support coming from a softer U.S. dollar and increased speculation that the Federal Reserve will ease policy in the months ahead. However, concerns over global trade and restrained investor activity are limiting major price swings.

The U.S. dollar continues to drift lower as markets price in multiple Fed rate cuts in 2025. Economic data points to slowing momentum, reinforcing expectations of policy adjustments that could favor non-yielding assets like gold and silver.

U.S. Initial Jobless Claims fell to 221,000 last week, lower than expected. However, this had little impact on the dollar or gold, as attention remains on the upcoming NFP report. Forecasts suggest job gains of 160,000 in February, with the unemployment rate expected to hold at 4%.

Fed Policy and Economic Signals Shape Gold’s Path

Federal Reserve officials have acknowledged economic risks, reinforcing expectations of eventual rate cuts. Philadelphia Fed President Patrick Harker and Atlanta Fed President Raphael Bostic pointed to slowing growth as a concern, suggesting policy adjustments may be warranted. Meanwhile, Fed Governor Christopher Waller indicated he does not support a rate cut in March but did not rule out easing later in the year if inflation declines further.

Market sentiment is also adjusting to shifts in trade policy. Trump’s temporary exemption of tariffs on Canadian and Mexican goods has introduced new variables for businesses and investors, influencing broader market positioning.

China is preparing additional stimulus measures. Finance Minister Lan Foan has signaled the government’s willingness to support economic growth if needed, while People’s Bank of China Governor Pan Gongsheng has suggested interest rate and Reserve Requirement Ratio (RRR) reductions could be considered.