Silver's Tepid Rebound Hinges on Fed Decision

Silver prices rose by 2.36% on Friday to $59.27 per troy ounce, but this gain is unlikely to signal a trend reversal.

The metal's recent two-day winning streak has done little to mask its deeper wounds, it remains down 16.48% since January.

The catalyst for Friday's pop was Japan's intervention in the currency markets, which weakened the dollar and made dollar-denominated silver cheaper for international buyers.

However, the policy outlook remains a significant headwind for an asset that pays no yield, market participants assign a 65% probability to another Fed rate hike in September, with some officials calling for a more restrictive monetary stance.