Silver’s modest gain in today’s session, up by 0.16% to $25.61, suggests cautious optimism among investors. On Wednesday, the Federal Reserve maintained its benchmark interest rate, holding firm on its projection of three rate reductions within the year, despite indications that inflation could remain high for an extended period.

In light of this, Fed policymakers have revised their forecasts upward for both economic growth and inflation for 2024. Consequently, the Fed’s benchmark short-term rate will remain at its 23-year peak of between 5.25% and 5.5%, marking the fifth consecutive meeting without a change.

This decision comes after the rate was increased from nearly zero starting in March 2022, an aggressive measure to curb the surge in inflation. Since July, however, the Fed has paused these hikes as the rate of consumer price increases has seen a significant slowdown.

This recent decision indicates that higher borrowing costs will persist for Americans as the Federal Reserve continues its efforts to mitigate the rapid rise in prices.

Following its latest meeting, the Federal Reserve issued a statement underscoring its stance that it anticipates no reduction in the target interest rate range until it is more confident that inflation, currently near 3%, is on a steady path back to the central bank’s 2% target.

Silver Price Forecast: Technical Outlook