Silver was up 1.5% at $16.165 an ounce, with prices up around 4% for the month.

The Federal Reserve on Wednesday left a key U.S. interest rate at a range of 2.25% to 2.50% and Chairman Jerome Powell said the central bank would be “patient” about further interest-rate moves, adding that it was open to slowing the pace of the runoff of its $4 trillion balance sheet if needed. Of particular note to market participants, the Fed removed a reference to “further gradual rate increases” in its policy statement, leaving many to believe that future rate hikes were on hold until further notice.

The policy update marked a decidedly dovish shift for the Fed, even if the market had anticipated a more moderated stance on the pace of monetary normalization. This position has put downward pressure on the U.S. dollar, which skidded lower late Wednesday, providing a runway for commodities priced in the currency to trade higher.

“Rate hike expectations for the remainder of the year have completely disappeared, with the market pricing in a greater chance of a cut as the next move,” wrote Edward Moya, market analyst at Oanda, in a Thursday research note.

Source: Marketwatch