2025.09.1804:01:47UTC+00Silver Extends Losses on Fed’s Cautious Tone

Silver prices dipped below $41.5 per ounce on Thursday, marking the third consecutive day of decline. This follows the US Federal Reserve's decision to implement a widely anticipated quarter-point interest rate reduction. However, the Fed adopted a more cautious tone towards further easing, in contrast to market predictions. It indicated plans for two additional cuts this year but only one more in 2026, challenging the forecast of two or three cuts next year. Fed Chair Jerome Powell characterized this approach as a strategic "risk management" measure, addressing concerns about labor market weakness without feeling compelled to expedite further cuts. In other global economic developments, the Bank of Canada similarly decreased its policy rate by 25 basis points, while the Bank of England and Bank of Japan are expected to maintain their current policies this week. Nonetheless, strong industrial demand driven by sectors such as solar energy, electric vehicles, and electronics, coupled with supply limitations, continues to lend foundational support to silver prices.