Silver prices extended gains for a second session on Thursday, benefiting from broad-based dollar weakness and falling US Treasury yields, as markets reacted to recent remarks from Federal Reserve Chair Jerome Powell and concerns over central bank independence.
While Powell reiterated caution on premature rate cuts due to inflation risks tied to trade tariffs, he hinted that policy easing could resume if inflation declines. The comments reinforced expectations for more cuts this year, supporting silver’s advance.
Adding to the dollar’s woes, President Trump announced his intention to replace Powell by September or October. Concerns over the Fed’s independence weighed on the greenback and supported safe-haven assets, including silver.
Beyond monetary and political factors, structural fundamentals continue to underpin silver’s outlook. The metal could see a fifth consecutive global deficit in 2025, driven by robust industrial usage. Additionally, physical investment is forecast to rise 3% in Western markets, supporting the market.
Looking ahead, traders will monitor final US Q1 GDP figures and further Fed commentary for clues on monetary policy direction. Stronger-than-expected data could challenge current dovish expectations and temper silver’s recent rebound
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