Silver price rebounds from intraday low as Fed rate cut hopes boost sentiment
Silver holds a strong monthly gain of 9.2%
Silver began June on a strong note, gaining over 10% during the first week, but the momentum faded as the metal entered a tight consolidation phase.
For the past three weeks, price has been trapped above the $35.5 pivot level while struggling to break through the 13-year high at $37.31. This sideways pattern signals uncertainty in market sentiment despite strong early-month gains.
- Silver holds a strong monthly gain of 9.2% as the price rebounds above $36.0
- U.S. rate cut bets boost silver appeal, but global risk appetite tempers safe haven demand
- Key resistance remains at $37.3,1, while Fed speakers today may guide next price leg
On Monday, June 30, the final trading day of the month, silver opened at $35.93 before dipping to an intraday low of $35.42 during the Asian session. This move continued last week’s intraday decline, reflecting traders' hesitation to push price higher without fresh catalysts. The decline found support near the $35.5 level, which has consistently acted as a critical floor throughout June. Following the bounce from this support, silver surged over 2% to reach an intraday high at $36.20.
Silver price dynamics (June 2025). Source: TradingView
Fundamentally, the bounce aligns with expectations that the US Federal Reserve could deliver more rate cuts this year and possibly sooner than previously projected. Such policy adjustments weaken the US dollar, making silver, which is priced in dollars, more attractive to foreign buyers. This dynamic helps explain the sharp recovery from early session lows.
Silver rally stalls as ceasefire and U.S.-China deal reduce safe-haven flow
However, improving global risk sentiment has capped silver’s safe-haven demand. The recent U.S.-China trade agreement and a ceasefire deal between Israel and Iran have reduced geopolitical tensions, leading investors to rotate funds into riskier assets. Traders are also waiting for comments later today from key Fed officials, including Atlanta Fed President Raphael Bostic and Chicago Fed President Austan Goolsbee, which could influence short-term market direction.
As trading moved into the European session, silver was last seen near $36.0, slightly retreating from its intraday-high. The opening price at $35.9 is now acting as an immediate support level that traders will closely monitor. At current levels, silver is showing a strong monthly gain of 9.2%, highlighting its resilience even during periods of consolidation.
Looking ahead, whether silver can break above the $37.31 barrier will depend heavily on the dollar’s direction and fresh macroeconomic developments. For now, price action suggests a balanced tug between fundamental drivers and technical levels, keeping traders cautious while providing opportunities for both bulls and bears.
Market sentiment turned bearish after Silver failed to rally despite a weaker dollar and global optimism. Price was rejected at the 0.786 Fib as RSI turned bearish and volume increased.
