Silver Prices Hang in Balance as Traders Eye Fed Decision

The silver market has been stuck in a tight range between $55 and $62 per ounce for several weeks, with traders eagerly awaiting the next Federal Reserve policy decision to break out.

This range-bound period is due to a balance of bullish and bearish forces. On one hand, industrial demand, particularly from solar panel manufacturing and electronics, continues to support prices. The energy transition has created a structural demand floor for silver, which is a key component in photovoltaic cells and electrical contacts.

However, the persistently strong U.S. dollar and elevated real interest rates have capped upside momentum. The dollar index has remained resilient as the Fed maintains a cautious stance on rate cuts, making dollar-denominated precious metals less attractive to international buyers.