Fed's Tight Policy Pressures Silver, Supply Deficit May Offer Long-Term Support

In global markets, reduced geopolitical risks and the US Federal Reserve's (Fed) tight monetary policy are putting pressure on silver prices. Experts note that while this pressure may persist in the short term, a physical supply deficit could drive prices higher in the long run. According to analyses, a physical supply deficit of 46.3 million ounces is projected for 2026. This indicates that supply will fall short of current demand, potentially providing long-term price support. Technical indicators show a possible recovery signal. However, the Fed's interest rate hikes and a strong dollar continue to create a negative environment for commodities like silver. Investors are advised to remain cautious about short-term fluctuations and monitor the supply-demand balance. Long-term expectations suggest that the supply deficit could support prices. This is not investment advice.