Silver prices rose above $30.50 per ounce on Monday, rebounding from two-month lows as the dollar rally lost momentum and investors reassessed the Federal Reserve's monetary policy outlook.
Silver rises as dollar eases
The dollar faced profit-taking after its recent surge, which was fueled by expectations of fewer Fed rate cuts and optimism over potential economic gains under the incoming Trump administration. Market participants are now awaiting further comments from Fed officials this week for clearer guidance on the future trajectory of US interest rates.
Focus on Chinese LPR
Attention also turned to China’s upcoming Loan Prime Rate (LPR) decision, amid hopes for additional stimulus measures to bolster economic growth. Meanwhile, geopolitical tensions intensified after US President Joe Biden authorized Ukraine to use US-made weapons for strikes deep into Russian territory. This escalation has heightened concerns about a broader global conflict, driving renewed demand for safe-haven assets like silver.
