Silver near $31 amid rate cut bets, demand concerns

Silver prices climbed to nearly $31 per ounce on Thursday, reaching a one-month peak, as softer US inflation fueled expectations for further interest rate cuts by the Federal Reserve this year.

Silver near $31 amid rate cut bets, demand concerns

Core inflation unexpectedly slowed in December, while headline inflation matched forecasts. The outlook for lower US interest rates will likely boost economic growth, weaken the dollar, and stimulate commodity demand. However, despite this upward momentum, silver prices remained below the 12-year high of $35 in October due to concerns over uncertain industrial demands.

China's solar rules could curb silver demand

Notably, overcapacity in China’s solar panel industry has led photovoltaic companies to join a government-led self-regulation program, potentially limiting silver demand from this key sector.