Silver extends losses on Fed cautious tone

Silver slipped below $41.5 per ounce on Thursday, falling for a third consecutive session after the US Federal Reserve delivered a widely expected quarter-point rate cut but struck a more cautious stance on further easing than markets anticipated.

The Fed signaled two more reductions this year but only one in 2026, pushing back against expectations for two or three cuts next year.

Chair Jerome Powell described the move as “risk management” in response to labor market weakness, while emphasizing there is no urgency to accelerate cuts.

Elsewhere, the Bank of Canada also lowered its policy rate by 25 bps, while the Bank of England and Bank of Japan are expected to keep policy steady this week.

Still, robust industrial demand from solar, electric vehicles and electronics, alongside supply constraints, continues to provide underlying support for silver.