Silver Edges Up Amid Dollar Weakness and Fed Rate Hike Expectations
The price of silver has risen by 2% to ₹244,213 as the US dollar hit a four-month low. This comes amidst renewed inflation risks due to escalating Middle East tensions and upcoming key US inflation data that will provide signals on the Federal Reserve's policy outlook.
Investors are pricing around a 60% chance of a Fed rate hike at the September 16 meeting, with UBS expecting 25-basis-point rate hikes in September and December. The ADP data showed US private employers added an average of 12,000 jobs per week through August 22.
The global silver market is expected to record a sixth consecutive structural deficit, widening to 46.3 million ounces in 2026 from 40.3 million ounces in 2025 despite a 2% decline in total demand. Silver remains 35% below its January record of $121.6 per ounce after a 147% surge during 2025.