Silver starts the fourth quarter on a strong note after an historic announcement by the Fed to make significant shifts to its policy framework.
Last week, the U.S Federal Reserve announced that the central bank’s inflation target could exceed 2%, which would drive inflation slightly higher, whilst keeping interest rates lower for longer. This ultimately continues to fuel a very bullish environment for the precious metals.
Fed Governor Lael Brainard on Tuesday said the U.S. central bank would need to roll out more stimulus to fulfil its new promise of stronger job growth and higher inflation.
With the central bank still cautious about the U.S. economic outlook, the Fed will most likely keep rates near zero for a long time.
Low interest rates reduce the opportunity cost of holding non-yielding bullion, which is also viewed as a hedge against inflation and currency debasement.
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