Silver prices remained relatively stable at around $30.40 per ounce on Wednesday as traders braced for the Federal Reserve’s upcoming policy decision.
Silver holds steady as Fed decision looms
The US central bank is widely expected to leave interest rates unchanged, despite mounting pressure from President Donald Trump to reduce borrowing costs in an effort to stimulate economic growth. Investors are also closely monitoring the potential impact of US tariffs, especially in light of escalating trade tensions. On Tuesday, a White House spokesperson confirmed that Trump plans to implement tariffs on Canada and Mexico this Saturday, further raising concerns over the global trade landscape. Meanwhile, tariffs on China remain under active consideration, with the situation continuing to evolve.
Challenges on the supply side
In addition to these geopolitical concerns, the silver market is facing challenges on the supply side. Overcapacity in China’s solar panel industry has prompted photovoltaic companies to join a government-led self-discipline program, which is expected to significantly reduce silver demand from one of the metal’s major industrial sectors. This development comes at a time when silver's industrial applications, particularly in electronics and solar energy, have been critical to its price movements. As a result, the combined influence of global trade uncertainties and slowing industrial demand is contributing to a complex environment for silver traders.
