Silver Flirts with $45.2 an Ounce, Highest in 14 Years

Markets are closely monitoring weekly unemployment claims, which are expected to be released today, as well as the PCE price index, a key inflation measure favored by the Fed, due tomorrow. These figures are likely to impact expectations regarding the Federal Reserve's monetary policy. Recent comments from Fed officials have added uncertainty to the outlook. Markets are no longer fully pricing in a rate cut as soon as next month but are anticipating approximately 43 basis points of cumulative reductions during the last two meetings of 2025. Additionally, Fed Chair Jerome Powell has emphasized that price developments remain at the lower end of forecasts, potentially paving the way for a less restrictive approach. Beyond monetary policy expectations, silver is supported by strong fundamentals. Supply remains limited, while demand is bolstered by the needs of the solar, electrical, and electronics industries, contributing to historically high price levels.