Federal Reserve Chair Jerome Powell has hinted the central bank could loosen monetary policy more forcefully than markets expected, triggering an immediate response in financial markets. The silver sector was among the hardest hit, with spot prices dropping 33% to end near $77 per ounce.
Investors took Powell’s remarks as a clear indication the Fed is prepared to cut its benchmark rate sooner and by a larger margin over the coming year. This outlook strengthened the U.S. dollar and lifted real yields—both of which typically pressure precious metals. Silver, which often follows gold and also benefits from industrial demand, suffered the steepest decline.
Now strategists must delicately balance how quickly the Fed may pivot from tightening to easing and at what rate cuts will be implemented. For silver bulls, the key concerns are whether economic growth can sustain industrial usage and if further Fed guidance might ultimately reverse the downtrend. In the interim, market participants will monitor each data release and FOMC statement for hints on the trajectory of interest rates—and silver prices.
📊 Market Context & Insight
Disclaimer: This content was automatically retrieved from reputable news outlets for educational use only. Always consult certified financial advisors or licensed Malaysian institutions before making any investment choices.
💡 What This Means for Malaysian Investors
In Malaysia, gold price movements are driven by the Ringgit’s performance, policy moves from Bank Negara Malaysia, inflationary trends, and global gold benchmarks. Cultural traditions, jewellery purchasing habits, and the investment appetite of households and companies also shape local demand.
🔗 Useful Resources
Malaysian investors often view gold as a hedge against currency volatility, inflation, and global uncertainty. To diversify, many opt for physical gold jewellery, gold bars, Gold Investment Accounts (GIAs) from banks like Maybank and CIMB, and Bursa Malaysia’s Gold Futures (FGLD). Balancing between tangible and paper gold can help align with long-term financial objectives.
0 comments