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Silver prices fell by 1.06% to $74.90 on Monday as traders adopted a cautious stance ahead of the upcoming Federal Reserve meeting. The metal remains directionless amid uncertainty surrounding the Fed's policy decisions and potential leadership changes following Jerome Powell's tenure. Market participants are closely monitoring the central bank's stance on inflation and interest rates, which could influence broader commodity markets.
The decline in silver reflects investor risk aversion and reduced speculative activity. Traders are positioning for potential volatility following the Fed's meeting, which may set the tone for global financial markets. Central bank decisions often have ripple effects on precious metals, as higher interest rates typically weaken gold and silver demand.
The key focus for the coming week will be the Fed's policy announcement and Powell's exit strategy. A dovish stance could boost silver prices, while a hawkish pivot might pressure the metal further. Investors should also watch for geopolitical developments and industrial demand trends that could impact silver's technical outlook.
