Fed Rate Cut Expectations Soar: Markets See 57% Chance of 25-Basis-Point Cut, 43% Chance of a Bigger 50-Basis-Point Cut

Silver prices surged last week, breaking above the $30.19 per ounce mark and confirming a bullish trend on the weekly charts. The rally brought key levels of $31.76 and $32.52 into focus. Optimism that the U.S. Federal Reserve is preparing to cut interest rates, coupled with a weaker U.S. dollar and strong gold inflows, fueled silver's upward move.

One of the key drivers of silver's rise was the U.S. dollar's continued decline, which hit its lowest level of the year against the yen. A weaker dollar typically boosts silver by making it cheaper for holders of other currencies. Additionally, global gold-backed exchange-traded funds (ETFs) saw continued inflows, with the SPDR Gold Trust reaching its highest levels since January. This increased demand for gold also lifted silver prices, as the two metals often move in tandem.