At 12:27 GMT, XAG/USD is trading $36.64, up $0.26 or +0.71%.

Federal Reserve Rate Cut Expectations Back Bullion

Minutes from the Fed’s June meeting indicate that most officials see rate cuts likely this year, even though rates were held steady last month. This has pushed the 10-year Treasury yield down to 4.342% and the 2-year to 3.853%, lowering the opportunity cost of holding non-yielding assets like silver and gold.

This environment supports continued bids in silver, especially if inflation indicators soften alongside hiring data, aligning with traders’ expectations for a policy pivot later in the year.

Trump Tariffs Stir Fresh Inflation Concerns

President Trump’s aggressive tariff moves, including 50% levies on copper imports and goods from Brazil effective August 1, have kept inflation fears alive.

While broader equities remain resilient, traders are weighing the risk of renewed supply-driven inflation if energy markets tighten.

For silver, this supports a potential upside scenario if inflation concerns feed into higher metals bids, especially with copper facing tariff disruptions that may ripple into industrial demand narratives for silver.