FX.co ★ Silver Climbs on Dovish Fed Signals

On Tuesday, the price of silver surpassed $51 per ounce, reaching its highest level in over a week. This uptick was driven by dovish statements from Federal Reserve officials, which heightened expectations for a near-term reduction in interest rates. Federal Reserve Governor Christopher Waller expressed his support for a rate cut in December, highlighting increasing risks in the labor market. His comments align with those of San Francisco Fed President Mary Daly and New York Fed President John Williams. Waller also pointed out that future policy decisions will rely significantly on a backlog of delayed data due to the government shutdown. Currently, markets are anticipating an 81% probability of a 25 basis point rate cut next month, a noticeable rise from just 42.4% a week earlier. Investors are also focusing on key U.S. economic data releases this week—such as retail sales, the producer price index, durable goods orders, and weekly jobless claims—to gain further insight into economic prospects.