Silver prices experienced a notable surge recently, surpassing the $30.19 per ounce mark and indicating a bullish trend on weekly charts. The upward momentum brought attention to significant levels of $31.76 and $32.52. This increase was largely attributed to optimism surrounding potential interest rate cuts by the U.S. Federal Reserve, alongside a weakening U.S. dollar and strong inflows of gold, which typically move in correlation with silver. The decline of the dollar, reaching its lowest point against the yen this year, contributed to the rise of silver by making it more affordable for holders of alternative currencies. Moreover, heightened demand for gold-backed exchange-traded funds, including the SPDR Gold Trust, also drove silver prices higher. Various economic indicators released last week suggested a conducive environment for a rate cut by the Federal Reserve. Reports such as the Consumer Price Index (CPI) for August, which showed a 0.2% increase, and the Producer Price Index (PPI) at 0.2%, signaled easing inflation pressures. Jobless claims data indicated a stable labor market without significant weaknesses. These developments have led to market expectations of a potential rate cut by the Federal Reserve, with a 57% probability of a 25-basis-point reduction and a 43% probability of a larger 50-basis-point cut at the upcoming Federal Open Market Committee (FOMC) meeting. This anticipated move would be the first rate cut since 2020 and is likely to further bolster silver prices. As the week concluded, silver closed strong at $30.72 per ounce, representing a nearly 10% increase. Factors such as decreasing Treasury yields, a weakening dollar, and growing anticipation of Fed intervention supported silver prices. Looking forward, silver’s performance will heavily depend on the outcome of the Fed’s decision on interest rates. A larger rate cut could potentially drive silver prices above $31.76, with a chance to test $32.52. Alternatively, a smaller rate cut might lead to price consolidation around $30.19 or a possible decline. Given the release of key economic data and market conditions, the Fed’s upcoming decision is poised to significantly impact the next major movement in silver prices.