Spot Silver pulled back from a 20-week high on Wednesday, as the US Dollar recovered from a five-month low ahead of the outcome of the Federal Reserve’s policy meeting.
A firmer US Dollar makes dollar-priced Silver less appealing to investors holding other currencies.
Market players now focused on the outcome of the Federal Reserve’s two-day policy meeting to assess US economic outlook amid global trade concerns.
The Fed is widely expected to leave its federal funds rate target range intact at 4.25%-4.50% today.
The new set of FOMC economic forecasts may offer the most tangible evidence yet of how policy makers perceive the potential impact of the Trump administration’s tariff policies.
The FOMC interest rate projections will also be closely examined. According to Swissquote Bank’s Ipek Ozkardeskaya, in case the Fed indicates more rate cuts than previously expected, the greenback could appreciate slightly. And, a more cautious stance on rate cuts could pressure the dollar.
Meanwhile, on the geopolitical front, Israel delivered a series of air strikes upon Gaza, leading to the death of over 400 people on Tuesday, according to Palestinian health authorities. Israel warned that the assault was “just the beginning.”
The US Dollar Index was last up 0.34% to 103.597, after falling as low as 103.197 on Tuesday.
Spot Silver was last down 1.05% on the day to trade at $33.65 per troy ounce. Yesterday the commodity went up as high as $34.24, or its highest price level since October 30th 2024.
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