Silver prices fell to $63 on Friday, raising pullback risk after the Fed rate cut.
XAGUSD – Daily Chart
The price of XAGUSD has been rejected from the $63 level and may pull back to test the previous high.
The U.S. Federal Reserve’s Open Market Committee met last week, and Jerome Powell managed to secure votes on December 10 for a third quarter-point cut this year. The final majority was 9-3, Bloomberg reported, but soft dissents showed that not all policymakers agreed with the latest cut.
“We went into the meeting looking for a hawkish’ cut, Priya Misra, a fixed-income portfolio manager at J.P. Morgan Asset Management, told WSJ.
A Fed official who voted against the cut is now saying he expects rates “can come down a significant amount over the next year.
Federal Reserve Bank of Chicago President Austan Goolsbee said in a statement that he is projecting more interest-rate cuts for 2026 than some of his colleagues. He said he dissented from the December cut last week because he wanted to wait for additional inflation data.
“Given that inflation has been above our target for four and a half years, further progress on it has been stalled for several months, and almost all the businesspeople and consumers we have spoken to in the district lately identify prices as a main concern, I felt the more prudent course would have been to wait for more information,’’ the statement said.
