By Bas Kooijman, CEO and Asset Manager of DHF Capital S.A
Silver rose on Tuesday, trading near all-time highs as markets priced in a nearly 90% probability of a Federal Reserve rate cut this week. Investors remain focused on whether Chair Powell will deliver a “hawkish cut” by signaling caution about further easing in 2026. The updated FOMC Economic Projections will also be closely watched for guidance on the policy path.
Expectations for additional cuts next year point to two rate cuts. Any dovish shift in tone could further support non-yielding assets such as silver. However, a more cautious stance and forecasts from the Federal Reserve could weigh on the metal.
Silver’s rally has also been fueled by tightening physical conditions. Global silver ETFs continued to see inflows, bringing holdings to their highest in multiple years, while exchange inventories remain low, adding to the bullish narrative. Additionally, strong industrial demand continues to underpin the medium-term bullish thesis for silver.