Silver prices took a hit on Tuesday, dropping nearly 2% to around $76 per ounce, extending a three-week decline. This comes as liquidity remained subdued during the holiday season in China, Hong Kong, and other Asian markets. Chinese traders had initially driven a speculative surge in precious metals in January, but this dramatic reversal has prompted authorities to take measures to curb market risks. Silver had surged to a record high above $120 per ounce in late January, but then tumbled to roughly $64 earlier this month as leveraged positions were unwound and investors liquidated holdings to cover losses elsewhere. With US markets back open, attention is now shifting to the latest minutes from the Fed and the core PCE price index for clearer signals on the monetary policy trajectory. On Friday, silver rebounded nearly 3% after softer-than-expected US inflation data reinforced expectations that the Fed will begin easing later this year. Markets are currently pricing in a rate cut in July, with a strong probability of an earlier move in June. However, this could spark differing opinions, as some experts argue that the Fed may not be able to ease as quickly as markets are expecting. So, what do you think? Will the Fed be able to ease as quickly as markets are pricing in? Share your thoughts in the comments below.
