Silver declines on stronger dollar

Silver prices slid toward 37 dollars per ounce on Wednesday, marking their lowest level in more than two weeks as the U.S. dollar firmed ahead of key Federal Reserve events. The pullback reflects shifting investor positioning in anticipation of fresh policy signals, with traders hesitant to add exposure to precious metals before clarity on the Fed’s next steps.

The immediate focus is on the release of the July Fed meeting minutes, which carry unusual weight after the gathering produced the first policy dissents since 1993. Governors Christopher Waller and Michelle Bowman favored a quarter-point rate cut rather than leaving rates unchanged, highlighting divisions within the Federal Open Market Committee. The minutes are expected to provide detail on the depth of disagreement and the conditions under which further easing may be considered.

Attention will then turn to Fed Chair Jerome Powell’s remarks at the Jackson Hole symposium later this week. Markets are watching closely to see whether Powell signals a commitment to rate cuts in September or pushes back against expectations of more aggressive easing. Traders currently assign an 85 percent probability of a quarter-point cut at the September 16–17 meeting, with futures pricing in about 54 basis points of total reductions by year-end, leaving scope for either two smaller cuts or one larger 50-basis-point move.

Adding to the bearish tone for silver, geopolitical risks have eased somewhat. Progress in Ukraine peace negotiations has reduced safe-haven demand, while ongoing U.S.–European trade discussions have so far prevented an escalation into a broader global trade war. These developments, combined with the recent rally in equities and resilience in risk assets, have pulled capital away from precious metals.

Still, analysts note that silver retains structural support from industrial demand, particularly in electronics and solar panel production, which could help stabilize prices once macro-driven selling pressure subsides. For now, however, sentiment is dominated by central bank policy cues, and silver’s trajectory remains closely tied to movements in the dollar and bond yields.