Silver holds near £43.50 an ounce as traders prepare for Federal Reserve decision

Silver is consolidating near £43.50 per troy ounce as traders position ahead of the Federal Reserve announcement tomorrow, 29 July. At an approximate exchange rate of 1.35, the metal is around $58.65 per ounce, roughly £1.40 per gram. Gold sits near £3,025 an ounce, or $4,083, little changed as markets catch their breath.

The Federal Reserve is expected to hold interest rates steady at 3.50 to 3.75 per cent. However, markets are pricing about a 20 per cent chance of a surprise rate hike, which is why traders are cautious ahead of the announcement. Higher interest rates tend to weigh on precious metals because they pay no income and become less attractive when bond yields rise. Silver has retreated from the $60 level it approached last week.

Longer term, silver's story rests on durable industrial demand. Data centres supporting artificial intelligence, renewable energy projects, and semiconductor manufacturing all require substantial quantities of the metal. Global supply remains tight: the Silver Institute projects a sixth consecutive annual market deficit of roughly 46 million ounces for 2026. Industry accounts for about 58 per cent of silver consumption, providing a structural floor that gold lacks.

For UK buyers, the all-in cost remains the key metric: spot price plus dealer premium and any delivery or storage charges. Silver carries 20 per cent VAT, making allocated vault storage an option for those seeking tax efficiency. This is general information, not financial advice.