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Silver prices reacted sharply to Federal Reserve Chair Jerome Powell’s latest remarks, underscoring how closely traders tie precious metals to monetary policy signals. Powell’s outlook pointed to a cautious but steady approach on interest rates, suggesting that while the Fed remains committed to taming inflation, policymakers are increasingly mindful of economic headwinds.

For silver, that combination matters. Higher rates often weigh on non-yielding assets like precious metals, but lingering inflation risks and uncertainty about growth can also drive investors toward hard assets as protection. Powell’s tone left markets recalibrating expectations, with silver catching a bid as participants looked for stability outside the dollar and equities.

The sharp move highlights silver’s dual role as both an industrial commodity and a store of value. On one hand, Powell’s comments raised questions about demand in a slowing economy. On the other, they reinforced silver’s appeal as a safe-haven asset during policy transitions. The reaction serves as another reminder that even subtle shifts in Fed language can ripple quickly across the metals market.

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