The annual meeting of many central bankers took place in Jackson Hole. According to Fed Chairman Powell, interest rates will probably be lowered in September.
Advertisement/Advertising - This article is distributed on behalf of MAG Silver Corp. and Meridian Mining UK Societas, with whom SRC swiss resource capital AG has IR consulting agreements. Creator: SRC swiss resource capital AG · Author: Ingrid Heinritzi · First published: August 26, 2025, 08:50 a.m., Europe/Berlin
At least interest rates remained unchanged in the first eight months of 2025. In any case, an interest rate cut is good for the gold price. Fed Chairman Powell's speech caused the US dollar to weaken and the currency and commodity markets to move. A weak dollar is always good for precious metals. Gold futures also benefited from the decline in the dollar, and silver performed even better. And there is still uncertainty regarding the independence of the US Federal Reserve, which is strengthening precious metals. The geopolitical and economic outlook is not necessarily improving. German investors are therefore following the lead of central banks, Asian asset managers, and other Western investors and turning to gold.
After all, the rise in the gold price has enabled profits to be made for around two years. Silver has seen structural growth in demand, not least from the photovoltaic industry. Compared to the gold market, the silver market is very small. If, for example, some of the capital flows into silver instead of gold, then the price of silver should also rise significantly. An increase in the amount of silver recycled will not change this. A sustained rally in the price of silver could now be on the horizon.
Whether there will be further interest rate cuts after September remains to be seen, with experts divided on the issue. One of the most important factors is the development of inflation data. The overall inflation rate in the US was 2.7 percent in July. The picture is different for producer prices. This could be due to tariffs, which are likely to make products more expensive over longer periods. In any case, there is potential for price increases for both gold and silver. Mining companies should also be kept in mind.
MAG Silver - https://www.commodity-tv.com/ondemand/companies/profil/mag-silver-corp/ - is an attractive silver company, a silver producer with interests in the Juanicipio silver mine (silver and gold) in Mexico.
Meridian Mining - https://www.commodity-tv.com/ondemand/companies/profil/meridian-mining-uk-societas/ - owns the Cabaçal project (copper, gold, silver) in Brazil, in a region with a well-developed and productive mining sector.
Current company information and press releases from Meridian Mining (- https://www.resource-capital.ch/en/companies/meridian-mining-uk-societas/ -) and MAG Silver (- https://www.resource-capital.ch/en/companies/mag-silver-corp/ -).
Sources:
https://www.kitco.com/opinion/2025-08-22/rate-cut-expectations-boost-sentiment-while-silvers-decoupling-gold-draws?utm_campaign=Rate%20Cut%20Expectations%20Boost%20Sentiment%20While%20Silver%27s%20Decoupling%20from%20Gold%20Draws%20Attention&utm_content=Kitco%20News%3A%20Daily%20Recap&utm_medium=email&utm_source=kitco&utm_term=;
https://www.kitco.com/news/article/2025-08-22/gold-price-gains-powell-signals-rate-cuts-inflation-risk-clouds-outlook?utm_campaign=Harvard%20%22jumped%20the%20shark%22%20and%20bought%20gold%20and%20Bitcoin%3B%20will%20other%20public%20funds%20follow&utm_content=Kitco%20News%3A%20Daily%20Recap&utm_medium=email&utm_source=kitco&utm_term=
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